Assume a one-factor APT model. Suppose JSCs common stock has a factor beta of .8, the risk-free rate is 3.2 percent, and the expected market return is 11.2 percent. What is the expected return for JSC stock?

a. 10.25%

b. 6.40%

c. 7.20%

d. 9.60%

e.12.16%