An organisation is evaluating the performance of its clothing business unit, given current trading conditions. Over the last 12 months, the business unit generated $1,400,000 in revenue, with expenses of $650,000. The monthly standard deviation of revenue was $95,000, with a mean of $102,000. The risk free rate is 6%. Using a 95% Confidence Level what is the RORAC to one decimal place?

Select one:

a.

7.4%

b.

8.6%

c.

8.3%

d.

7.7%