Suppose investors expect a 3

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Suppose investors expect a 3.0% inflation rate in the future. The real risk-free rate is 2.0%, and the market risk premium is 7.0%. The stock of Everest Expeditions has a beta of 1.5. The stock’s realized rate of return was averaged at 15.0% over the last 5 years. The required rate of return for the stocks of Everest Expeditions is (Hint: first step is to calculate the nominal risk-free rate)
Select one:

a.
22.00%

b.
15.5%

c.
15%

d.
12.60%