$7.$ A stock has a risk premium of $7$ percent and a beta of $1\mathrm{.}5.$ If the risk$-$free rate is $2\mathrm{.}4$ percent. What is the expected return on this stock?

$9\mathrm{.}2\%$

$9\mathrm{.}4\%$

$12\mathrm{.}7\%$