Suppose Carz common stock has a market factor beta of .9, the risk-free rate is 3.5 percent, inflation is expected to be 2.6 percent, and the expected market risk premium is 7.2 percent. What is the expected return based on the one-factor arbitrage pricing model?

a.		13.05%
b.		9.98%
c.		7.72 %
d.		12.32%
e.		12.58%