The Table Below Provides Factor Risk Sensitivities and Factor Risk

Multiple Choice

The table below provides factor risk sensitivities and factor risk premia for a three factor model for a particular asset where factor 1 is MP the growth rate in U.S. industrial production, factor 2 is UI the difference between actual and expected inflation, and factor 3 is UPR the unanticipated change in bond credit spread. $$\begin{array} { l c c } \text { Risk Factor } & \text { Factor Sensitivity } ( \boldsymbol { \beta } ) & \text { Risk } \text { Premium( } \boldsymbol { \lambda } ) \\\hline \text { MP } & 1.76 & 0.0259 \\\text { UI } & - 0.8 & - 0.0432 \\\text { UPR } & 0.87 & 0.0149\end{array}$$ Calculate the expected excess return for the asset.

A) 12.32%
B) 9.32%
C) 4.56%
D) 6.32%
E) 8.02%