Below is some information about Exxon Mobil [XOM] taken from the Google Finance website. According to the CAPM, what is their cost of equity (required rate of return on equity)? Assume the market is expected to return 8% and risk free rate is 1%.

(from Google Finance) XOM Range 81.82 - 82.26 52 week 80.31 - 95.55 Open 82.03 Vol / Avg. 18.83M/12.47M Mkt cap 340.01B P/E 43.69 Div/yield 0.75/3.66 EPS 1.88 Shares 4.15B Beta 0.88 Inst. own 53%

a. 5.13% b. 7.16% c. 11.73% d. 14.34% e. 17.21%