A Manager Is Indifferent Between Rates of Return Satisfying I $\sigma$

Multiple Choice

A manager is indifferent between rates of return satisfying i = 0.08 + 0.02 $\sigma$ ( $\sigma$ is the standard deviation) .The manager's risk premium for $\sigma$ = 2 is:

A) 0%.
B) 2%.
C) 4%.
D) 8%.
E) 12%.