. The beta for Pecatonica Corporation's common stock is 1.25. The annual stock market risk premium is 6.4%, and the risk-free interest rate is 2.2% per year. According to the security market line (SML) technique, what annual average rate of return is expected on the stock market as a whole? [Preceding question 10 was based on the same general information.] A. 8.60% O B.5.12% O C. 4.20% OD. 6.40% OE. 10.75%