Assume the S&P 500 Has a Dividend Yield of 3

Assume the S&P 500 has a dividend yield of 3.2 percent.Analysts expect overall dividends to grow at 5.4 percent annually.Treasury bills yield 2.1 percent.The expected market rate of return is ________ percent,and the market risk premium is ________ percent.

A) 10.7; 1.1
B) 10.7; 6.5
C) 8.6; 6.5
D) 8.6; 1.1
E) 5.3; 1.1