Fama-French Three-Factor Model An analyst has modeled the stock of a company using a Fama-French three-factor model.

Fama-French Three-Factor ModelAn analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 4%, the market return is 11%, the return on the SMB portfolio (rSMB) is 3.6%, and the return on the HML portfolio (rHML) is 5.2%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return? Round your answer to two decimal places.