The Market Has an Expected Return of 11

Multiple Choice

The market has an expected return of 11.4 percent and a risky asset with a beta of 1.18 has an expected return of 13 percent.Based on this information,what is the pure time value of money?

A) 1.84 percent
B) 1.90 percent
C) 2.38 percent
D) 2.51 percent
E) 2.90 percent