The Frick Endowment (FE) fund provides scholarships each year to women who deferred college to raise children and are now starting or returning to school. FE's average spending rate over the past 4 years has been 6.2%, while inflation has averaged 1.4%. The endowment's portfolio generated a 15% return last year, and the risk-free rate is 2.1%. For the upcoming year, FE's return objective is closest to:

a. 6.2%.

b. 7.6%.

c. 12.9%.

d. 16.4%.

Explain.