Calculate the required rate of return for Climax Inc., assuming that $(1)$ investors expect a $4\mathrm{.}0\%$ rate of inflation in the future, $(2)$ the real risk$-$free rate is $3\mathrm{.}0\%,(3)$ the market risk premium is $5\mathrm{.}0\%,(4)$ the firm has a beta of $1\mathrm{.}40,$ and $(5)$ its realized rate of return has averaged $15\mathrm{.}0\%$ over the last $5$ years. Do not round your intermediate calculations.

$14\mathrm{.}28\%$

$11\mathrm{.}34\%$

$11\mathrm{.}06\%$

$13\mathrm{.}86\%$

$14\mathrm{.}00\%$