Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 50%. In addition, expected inflation increases by 2.50%. What is the stocks new required return?

Initial beta 1.00

Initial required return 10.20%

Market risk premium 6.00%

Percentage increase in beta 50%

Increase in inflation premium 2.50%

(A) 15.70%

(B) 17.11%

(C) 15.39%

(D) 12.25%

(E) 14.92%