Rate of return on market portfolio is 0.16 and variance of rates of return is 0.09. Covariance between rates of return on market portfolio and portfolio A is 0.15. Expected rate of return on portfolio A is 0.25. Market is in a state of equilibrium. FOR THE GIVEN DATA RISK FREE RATE IS EQUAL:

a.

5.56%

b.

2.57%

c.

3.06%

d.

4.86%