Tall Stand Timber Stock Has an Expected Return of 16

Multiple Choice

Tall Stand Timber stock has an expected return of 16.8 percent.What is the risk-free rate if the risk premium on the stock is 12.1 percent?

A) 4.70 percent
B) 5.30 percent
C) 5.67 percent
D) 6.55 percent
E) 7.17 percent