ABC Inc.$\text{'}$s stock has an expected return of $12\mathrm{.}7\%,$ a beta of $1\mathrm{.}12,$ and is in equilibrium. If the risk$-$free rate is $2\mathrm{.}6\%,$ what is the market risk premium?

A$.$

$9\mathrm{.}02\%$

B$.$

$9\mathrm{.}23\%$

C$.$

$6\mathrm{.}56\%$

D$.$

$8\mathrm{.}56\%$

E$.$

$7\mathrm{.}54\%$