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Porter Inc.'s stock has an expected return of 10.50%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 2.50%, what is

Porter Inc.'s stock has an expected return of 10.50%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 2.50%, what is the market risk premium? Do not round your intermediate calculations.

a. 8.00%

b. 6.40%

c. 8.40%

d. 10.00%

e. 5.90%

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