1. Derek Ramsey is an analyst with Bullseye Corporation, a major U.S.-based discount retailer. Bullseye is considering opening new stores in Brazil and wants to estimate its cost of equity capital for this investment. Ramsey has found that:·The yield on a Brazilian government 10-year U.S. dollar-denominated bond is 7.2%.·A 10-year U.S. Treasury bond has a yield of 4.9%.·The annualized standard deviation of the Sao Paulo Bores stock index in the most recent year is 24%.·The annualized standard deviation of Brazil's U.S. dollar-denominated 10-year government bond over the last year was 18%.·The appropriate beta to use for the project is 1.3.·The market risk premium is 6%.·The risk-flee interest rate is 4.5%.Which of the following choices is closest to the appropriate country risk premium for Brazil and the cost of equity that Ramsey should use in his analysis?Country risk premium for Brazil　　　Cost of equity for Project