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Currently, the nominal risk - free rate is 3 percent, the market risk premium is 1 2 percent, and the beta for Home Depot's stock

Currently, the nominal risk-free rate is 3 percent, the market risk premium is 12 percent, and the beta for Home Depot's stock is 2.03. Inflation is expected to increase by 0.6 percentage points and investors' risk aversion is expected to decrease by 2.2 percentage points (as the emerging market scare improves). If these changes happen, what would investors require as a return on Home Depot's stock?
a.24.71 percent
b.23.49 percent
c.17.40 percent
d.32.43 percent
e.22.29 percent
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