5. Consider a three-factor APT model. The factors and associated risk premiums are : (5分)

| Factor | Risk Premium |
| --- | --- |
| Change in GNP | 6.5% |
| Change in energy prices | -1.5% |
| Change in long-term interest rates | +3.2% |

A stock with average exposure of b=1.5 to changes in GNP and long-term interest rates, but negative exposure of b= -2.5 to the energy factor. With the risk-free interest rate is 4%, please calculate expected rate of return on the stock.