Calculate the Required Rate of Return for Climax Inc

Calculate the required rate of return for Climax Inc. ,assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30,and (5) its realized rate of return has averaged 15.0% over the last 5 years.Do not round your intermediate calculations.

A) 20.91%
B) 18.87%
C) 16.28%
D) 17.76%
E) 18.50%