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 US 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. Calculate the expected excess return for the asset.

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