You wish to calculate the equilibrium expected return for Stock I, E(R. You assume that the capital asset pricing model holds. You know that the risk-free return is 0.01 (1%), the market risk premium is 0.07, and the covariance between the return on Stock I and the market portfolio is 0.08. You also know that an efficient portfolio has and expected return of 0.0625 and a return standard deviation of 0.15. What is the expected return on Stock I?
a. 0.0450
b. 0.1150
c. 0.1500
d. 0.1733