The correct answer is B. 9.00%.
The market risk premium is the additional return that investors expect to earn on a risky asset over the risk-free rate of return. It is calculated as the difference between the expected return on a risky asset and the risk-free rate of return.
In this case, the expected return on common stock is 14% and the risk-free rate of return is 5%. Therefore, the market risk premium is 14% – 5% = 9%.
Option A is incorrect because it is the total return on common stock, not the market risk premium.
Option C is incorrect because it is the risk-free rate of return, not the market risk premium.
Option D is incorrect because it is the market risk premium expressed in rupees, not in percentage terms.