If the risk premium on market portfolio is 9%, annual risk premium of small company shares compared to large company shares is 2%, the extra return received on a share with high book to market ratio compared with low book to market ratio is 3%. The risk free rate stands at 7%. The company shares are highly sensitive to market movements thus they have a high of 1.5. Sensitivity to size SMB (the difference between the returns of portfolios with small firms and portfolios with large firms) is small and the is -0.02. Sensitivity to HML (the difference between the returns of portfolios with value firms and portfolios with growth firms) is 0.25. What is the expected risk premium?

A. 12.21

B. 21.21

C. 21.12

D. 12.12