Mikkelson Corporation's stock had a required return of 10.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)

		16.25%
		13.66%
		17.07%
		16.66%
		11.88%