Market risk premium is 10%, market volatility (standard deviation of market return) is 18% and the risk-free rate is 4%.

Risky asset i has a volatility of 55% (standard deviation of its expected return is 0.55) and a correlation with the market portfolio of 23%. What is js expected rate return based on CAPM?

A. 18%

B. 13%

C. 20.2%

D. 7.2

E. 70.27

F. 11%

G. 9%