Question $2$

$5$ pts

Penguin International's stock has an expected return of $12\mathrm{.}8\%,$ a beta of $1\mathrm{.}25.$ If the riskfree rate is $2\%,$ what is the market risk premium according to the CAPM?

Your answer should be between $7\mathrm{.}74$ and $10\mathrm{.}58,$ rounded to $2$ decimal places, with no special characters.