Question $16$

Consider a stock that has an expected return of $12\mathrm{.}25\%,$ a beta of $1\mathrm{.}25,$ and is in equilibrium. If the risk$-$free rate is $5\mathrm{.}00\%,$ the market risk premium is closest to:

a$.5\mathrm{.}80\%$

b$.6\mathrm{.}09\%$

c$.6\mathrm{.}25\%$