For Freya's Fake Fields, Ltd., the analyst Arianna, using monthly EXCESS returns over the past 7 years, has estimated the Single Factor model, finding the market beta to be 1.25 and has forecasted that the expected alpha is 2.52%, and expected market (excess) return is 7.9%. Given this information, what is the Expected (excess) Return for Freya's Fake Fields, Ltd.?

Select one:

a.

3.51%

b.

4.49%

c.

12.39%

d.

7.18%

e.

2.52%

f.

9.88%

g.

insufficient information to determine