Linke Motors has a beta of 1.10, the T-bill rate is 3.00%, and the T-bond rate is 6.90%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 9.70%. Based on the SML, what is the firm's required return? Do not round your intermediate calculations.

a. 9.70%

b. 10.37%

c. 9.98%

d. 10.67%

e. 12.78%