calculation of risk-free rate of return

Question

The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3. What is the risk-free rate of return?

a. 2.8%

b. 3.1%

c. 3.7%

d. 4.2%

e. 4.5%