Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 1.50, the risk-free rate is 3.50%. Te market risk premium, i.e. the market return in excess of the risk free rate is 10%. Using the Securities Market Line (SML) in the context of the CAPM, what is the Expected Return for JumpMasters' stock?
A. 13.50%
B. 27%
C. 7.50%
D. 18.50%