Suppose the riskfree rate in the market is 3%, the expected return of the market portfolio is 20%, and the standard deviation of the market portfolio return is 25%. The covariance of the return of stock A and the market portfolio is 0.08. Based on CAPM, what is the expected return of stock A?

Select one:

a. 25%

b. 24.76%

c. 25.62%

d. 37.5%