The Expected Return on JK Stock Is 16

Multiple Choice

The expected return on JK stock is 16.28 percent while the expected return on the market is 11.97 percent. The stock's beta is 1.63. What is the risk-free rate of return?

A) 2.22 percent
B) 4.31 percent
C) 2.42 percent
D) 4.50 percent
E) 5.13 percent