CPL fund is carrying $3$ units of risk $1$ and $2$ units of risk $2$ while the US T$-$Bill is yielding $1\%$ p$.$a$.($per annum$).$ If you know the risk premia of these risks to be $1\%$ and $3\%$ respectively then:

A$)$ I expect CPL to earn $7\%$ and will buy it if historical returns are higher than this value

B$)$ l expect CPL to earn $8\%$ and will buy it if historical returns are higher than this value

C$)$ I expect CPL to earn $7\%$ and will buy it if historical returns are lower than this value

D$)$ I expect CPL to earn $8\%$ and will buy it if historical returns are lower than this value

E$)$ None of these statements are accurate regardless of my confidence in my model