The expected return on the stock market is 0.12 (12%) with a variance of 0.374. If the riskfree rate is 3%, calculate the expected return for stock XYZ that has a covariance (COV) of 0.14 with the market return. (Answer to the nearest 0.1%)

a) 15.0% b) 12.0% c) 4.3% d) 6.4% e) 7.8%