Oscar Martins is trying to determine the expected return for shares of the Dundee Paper Company. Because the company is poorly managed, it has a high beta of 1.9. Oscar knows that the risk-free rate is 2% and that the market risk premium is 7%, what return does Oscar demand to hold this companys stocks?

Select one:

a. 10.8%

b. 17.1%

c. 9.0%

d. 15.3%

e. 11.5%