Hi to everyone

Respect to a question from Schweser in a Practice Exam Volume 1, Exam 2 Afternoon, question 91, the answer is A but in the calculation I have serious doubts as how to apply the equity risk premium formula of the equity section. I see that in the third component the multiply number is 0.97 and not 0.9, which I believe it should be. Maybe I’m wrong but I wanted to ask if i missed something.

Thanks

Fernando