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HR Industries ( HRI ) has a beta of 2 . 2 , while LR Industries' ( LRI ) beta is 0 . 1 0

HR Industries (HRI) has a beta of 2.2, while LR Industries' (LRI) beta is 0.10. The risk-free rate is 3%, and the required rate of return on an average stock is 10%. The expected rate of inflation built into rRF falls by 1.0 percentage points, the real riskfree rate remains constant, the required return on the market falls to 9.0%, and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI, that is,rHRI-rLRI.
16.17%
13.97%
13.23%
14.70%
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