Cluster Private Limited is a Zimbabwean firm that is trading on a Foreign Stock Exchange which promises a security market return of 15% and a risk-free rate of return of 8% obtained on the economy’s...

Cluster Private Limited is a Zimbabwean firm that is trading on a Foreign Stock Exchange which promises a security market return of 15% and a risk-free rate of return of 8% obtained on the economy’s money markets. The company is new and relatively small compared to others such as Featherstone Private Limited that has been in the finance business for a long time. The returns to securities traded on the Foreign Stock Exchange based on the size of the firm are 17.5% to small firms and 12.5% to large firms. On the other hand, it is given that the book-to-market values of small firms are known to be higher than those of larger firms and returns due to such values are 20% and 16% respectively. Determine the total return to Cluster Limited’s shares given that the firm’s sensitivities are 0.75 to size, 1.25 to market and 1.40 to book-to-market values.