Ron is considering an investment with a standard deviation of 3.35% and a beta of 1.95. If the market's actual return is 11.25% and the risk-free rate of return is 4.05%, calculate the investment's expected rate of return using the capital asset pricing model (CAPM).

A)

14.60%

B)

18.09%

C)

21.94%

D)

7.90%