Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.1%, (3) the market risk premium is 5.3%, (4) the firm has a beta of 2.20, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations.

A) 15.66

B) 18.76

C) 27.28

D) 14.76