Answer is none of the above. Explain please

1.4 7. You are using the multi-factor model to estimate the expected return on Emerson Electric, and have derived the following estimates for the factor betas and risk premia: Macro-economic Factor Measure Beta Risk Premia (Rfactor-RJ Level of Interest rates T.bond rate 1.0 1.8% Term Structure T.bond rate T.bill rate 0.6% Inflation rate CPI 1.2 1.5% Economic Growth GNP Growth rate 4.2% With a riskless rate of 6%, estimate the expected return on Emerson Electric. A. 6% B. 13.6% C. 14.9% D. 17.1% E. None of the Above 1.8 1.4 7. You are using the multi-factor model to estimate the expected return on Emerson Electric, and have derived the following estimates for the factor betas and risk premia: Macro-economic Factor Measure Beta Risk Premia (Rfactor-RJ Level of Interest rates T.bond rate 1.0 1.8% Term Structure T.bond rate T.bill rate 0.6% Inflation rate CPI 1.2 1.5% Economic Growth GNP Growth rate 4.2% With a riskless rate of 6%, estimate the expected return on Emerson Electric. A. 6% B. 13.6% C. 14.9% D. 17.1% E. None of the Above 1.8