You have collected the following information to estimate the ERP for the Vietnamese market: (1) the default spread of the Dong (Vietnamese currency) denominated government bond is 1.78% and the standard deviation of it is 15%; (2) the equity risk premium for US is 4.5%, (3) the standard deviations of the equity market in Vietnam and U.S. are 25% and 20%. Estimate the ERP for Vietnam using the Goldman Sachs approach. Select one:

A. 2.720%

B. 6.280%

C. 7.467%

D. 5.625%