The correct answer is C. 8.00%.
The market risk premium is the additional return that investors expect to earn on risky assets, such as stocks, over the return on safe assets, such as Treasury bonds. It is calculated as the difference between the expected return on stocks and the risk-free rate of return.
In this case, the expected return on stocks is 19% and the risk-free rate of return is 11%. Therefore, the market risk premium is 8%.
Option A is incorrect because it is the expected return on stocks, not the market risk premium.
Option B is incorrect because it is the market risk premium expressed as a percentage, not as a dollar amount.
Option D is incorrect because it is the market risk premium expressed as a dollar amount, not as a percentage.