Consider the multi factor model APT with two factors. Portfolio A has a beta of 1.20 on factor 1 and a beta of 1.50 on factor 2. The risk premiums on the factor-1 and factor-2 portfolios are 4% and 7% respectively. The risk-free-rate of return is 5%. The expected return on portfolio A is _____ if no arbitrage opportunities exist.

a. 20.3%

b. 15.0%

c. 13.5%

d. 23.0%