An organisation is evaluating whether to continue with its sportswear business unit, given current trading conditions. Over the last 12 months, the business unit generated $1,100,000 in revenue, with expenses of $800,000. The monthly standard deviation was $35,000, and the risk free rate is 5%. Using a 95% Confidence Level what is the RORAC to one decimal place?

Select one:

a. 8.6%

b. 7.1%

c. 7.5%

d. 8.1%