A stock has an average expected return of 10.1 percent for the next 10 years. The beta of the stock is 1.45. The T-Bill rate is 5.5% and the T-Bond rate is 3.5 %. What is the market risk premium?

Select one:

a. 4.55%

b. 4.65%

c. 14.60%

d. 5.24%

e. 4.93%