We used the Fama-French three-factor model to estimate the return generating process of the Google stock as of January 1, 2010. We used monthly returns from January 2006 to December 2010. We found that the market beta, SMB beta and HML beta are 1.51, -0.20, and -1.33, respectively. Estimate the expected rate of return on Google based on the beta estimates. Use the T-bill rate of 2.00%, a market risk premium of 5.5%, SMB premium of 2.5% and HML premium of 4%.

A. 2.61% B. 3.34% C. 4.49% D. 5.24%