If the average 10 year return on an investment in the stock market is 11% and the average 10 year return on an investment in U.S. treasuries is 4%, what is the market premium an investor requires to compensate the investor for the risk the investor is taking by investing in the stock market instead of investing in U.S. treasuries which are risk free?

A) 10%

B) 4%

C) 7%

D) 8%