Using an APT model, what is the expected return for a stock given the following factor exposures and returns? Assume the risk-free rate is equal to 3%.
　　Factor exposures:
　　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%.
　　A. 4.8%.
　　B. 6.1%.
　　C. 6.5%.
　　D. 7.5%.
　　Answer:C