The common stock of Alibaba Group has a beta of 0.54 and an expected rate of return of 14.50%. Investors expect the return on the market portfolio this year to be 23.20%. Assuming that the risk-free rate does not change, what would be your expected return on Alibaba stock if the market portfolio return is 25.50%?

a.

20.46%

b.

10.53%

c.

14.31%

d.

15.74%

e.

12.11%