Question $12(1$ point$)$

HR Industries $($HRI$)$ has a beta of $2\mathrm{.}2,$ while LR Industries' $($LRI$)$ beta is $0\mathrm{.}10.$ The riskfree rate is $3\%,$ and the required rate of return on an average stock is $10\%.$ The expected rate of inflation built into $r_{RF}$ falls by $1\mathrm{.}0$ percentage points, the real risk$-$free rate remains constant, the required return on the market falls to $9\mathrm{.}0\%,$ 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$,r_{\text{H}\text{R}\text{I}}-$ rLRI.

A$)16\mathrm{.}17\%$

B$)13\mathrm{.}97\%$

C$)13\mathrm{.}23\%$

D$)14\mathrm{.}70\%$

$15\mathrm{.}44\%$