If the expected return on XYZ stock is 16.34 percent, the risk-free rate is 2.26 percent, the expected rate of inflation is 1.32 percent, and XYZ stock has a beta of 1.56, then what is the market premium?

a). 9.03% (plus or minus 0.03 percentage points)

b). 9.63% (plus or minus 0.03 percentage points)

c). 11.29% (plus or minus 0.03 percentage points)

d). 6.77% (plus or minus 0.03 percentage points)

e). None of the above is within 0.03 percentage points of the correct answer