Which one of the following statements is correct when Treasury bills yield 3.5% and the market risk premium is 9.5%?

Multiple Choice.

A - The S&P 500 would be expected to return 4.50%.

B - The S&P 500 would be expected to return 13.00%.

C - The S&P 500 would be expected to return 19.68%.

D - The S&P 500 would be expected to return 5.50%.