Company A's historical returns for the past three years are 6 percent, 15 percent, and 15 percent. Similarly, the market portfolio's returns were 10 percent, 10 percent, and 16 percent. Suppose the risk-free rate of return is 4 percent. What is the cost of equity capital (required rate of return of company A's common stock), computed with the CAPM? (Hint, from the market portfolio returns you can have the expected market return)

A. 14.0 percent

B. 12.0 percent

C. 8.5 percent

D. 10.0 percent

Please show work! Specially regarding market expected return