Please Show Work.

Microsofts stock has a standard deviation of 65% and a correlation with the market portfolio of 0.80. The market portfolio has an expected return of 6.5% and a standard deviation of 95%. The risk-free interest rate is 2%. Using the CAPM, the expected return of Microsoft is closest to?

A. 6.50%

B. 2.00%

C. 3.24%

D. 4.46%