Caterpillar $($NYSE:CAT$)$ stock has a Beta of $1\mathrm{.}25.$ What is the required rate of return for CAT stock if the market risk premium is $8\%$ and risk free rate is $2\%?$ Given that CAT is trading at $$115$ today, what would you expect the stock price to be one year from $($ignore dividends$)?$

a$.12\%,$$$128\mathrm{.}8$

b$.10\%,$$$126\mathrm{.}5$

c$.12\%,$$$115$

d$.$ Insufficient information