Using an arbitrage pricing theory (APT) model, what is the expected return for a stock given the following factor betas and factor risk premiums? Assume the risk-free rate is equal to 2%.

Factor betas:

• Standardized probability of default: 0.5
• Standardized average daily trading volume: -0.2
• Standardized average earnings growth forecast: 1.5

Expected factor risk premiums:

• Standardized probability of default: 2%
• Standardized average daily trading volume: -1%
• Standardized average earnings growth forecast: 1.5%