Linke Motors Has a Beta of 1

Multiple Choice

Linke Motors has a beta of 1.30,the T-bill rate is 3.00%,and the T-bond rate is 6.5%.The annual return on the stock market during the past 3 years was 15.00%,but investors expect the annual future stock market return to be 10.00%.Based on the SML,what is the firm's required return? Do not round your intermediate calculations.

A) 11.05%
B) 13.48%
C) 12.71%
D) 10.17%
E) 10.50%