Semitool Corp Has an Expected Excess Return of 6% for Next

Multiple Choice

Semitool Corp has an expected excess return of 6% for next year.However for every unexpected 1% change in the market,Semitool's return responds by a factor of 1.2.Suppose it turns out the economy and the stock market do better than expected by 1.5% and Semitool's products experience more rapid growth than anticipated,pushing up the stock price by another 1%.Based on this information what was Semitool's actual excess return?

A) 7.00%
B) 8.50%
C) 8.80%
D) 9.25%