You are given these factors and sensitivities:

Factor Sensitivity	Value
Risk-free rate	2.10%
Equity market return	7.80%
Market beta	1.25
Value beta	0.25
Liquidity beta	-0.65
Size premium	0.20%
Value premium	2.20%
Size beta	-0.75
Liquidity premium	3.80%

The expected return according to the FFM and PSM models, respectively, are closest to :

FFM __________ ; PSM __________.

a.

9.63% ; 12.15%

b.

7.21% ; 9.63%

c.

9.63% ; 7.21%