Question: The correct answer is bolded. I need to know how to solve the problem step-by-step. 6. What is the risk premium for T&S Footwear stock

The correct answer is bolded. I need to know how to solve the problem step-by-step.

6. What is the risk premium for T&S Footwear stock if its expected real return is 10.38%, the expected inflation rate is 3.58%, and the risk- free return is 2.19%? 8.19% (plus or minus 0.05 percentage points) 14.35% (plus or minus 0.05 percentage points) 12.14% (plus or minus 0.05 percentage points) 10.75% (plus or minus 0.05 percentage points) None of the above is within 0.05 percentage points of the correct

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