Hebron Motors has an expected return of 13.2 percent and a beta of 1.09. The expected return on the market is 12.4 percent. What is the risk-free rate?

• A.

  3.51 percent

• B.

  4.11 percent

• C.

  2.87 percent

• D.

  3.07 percent

• E.

  2.40 percent