cause its beta to increase by $50\%.$ In addition, expected inflation increases by $2\mathrm{.}00\%.$ What is the stock's new required rate of return?

Initial beta

Initial required return $(r_s)$

Market risk premium, $R{P}_M$

Percentage increase in beta

Increase in inflation premium, IP

$1\mathrm{.}00$

$10\mathrm{.}50\%$

$6\mathrm{.}00\%$

$50\mathrm{.}00\%$

$2\mathrm{.}00\%$

$16\mathrm{.}21\%$

$15\mathrm{.}50\%$

$17\mathrm{.}02\%$

$14\mathrm{.}00\%$

$14\mathrm{.}70\%$