The Expected Return on HiLo Stock Is 13

Multiple Choice

The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3. What is the risk-free rate of return?

A) 2.8%
B) 3.1%
C) 3.7%
D) 4.2%
E) 4.5%