Historical rates of return for the market and for Stock A are given below:

Year	Market	Stock A
1	6.0%	8.0%
2	-8.0	3.0
3	-8.0	-2.0
4	18.0	12.0

If the required return on the market is 11 percent and the risk-free rate is 6 percent, what is the required return on Stock A, according to CAPM/SML theory if Beta is .4534?

Select one:

a. 8.27%

b. 7.25%

c. 6.00%

d. 7.79%

e. 6.57%