单选题 The risk-free rate is 5 percent, the market rate is 12 percent, and the beta of a stock is 0.5, what would happen to the required rate of return if the inflation premium increased by 2 percent? It would:

A、 increase to 15.
B、 decrease to 8.5.
C、 increase to 10.5.

【正确答案】 C

【答案解析】k ₀ =5+0.5×(12-5)=8.5; k ₁ =7+0.5×(14-7)=10.5.