b

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: O a 15.5% O b. 15% C. 12.60% O d. 22.00%