A firm has a Beta of $1\mathrm{.}6.$ The market return is measured as $8\mathrm{.}5\%$ and the risk free rate is $1\mathrm{.}75\%$

What is the firm risk premium?

Group of answer choices

$6\mathrm{.}75\%$

$10\mathrm{.}8\%$

$12\mathrm{.}55\%$

$4\mathrm{.}35\%$

$12\mathrm{.}4\%$