The returns of stocks X and Y are given by a macroeconomic factor model and expressed as follows:

$R_X = 0.08 - 0.05F_1 + 0.03F_2 + \varepsilon_X$
$R_Y = 0.16 + 0.02F_1 + 0.04F_2 + \varepsilon_Y$

where $F_1$ and $F_2$ reflect surprises in two macroeconomic factors. If a portfolio has one quarter of its investment in Stock X and the rest in Stock Y, the portfolio's expected return is closest to: