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Question 2 (4 points) In the current economy, the risk free rate is 2%, while the market portfolio risk premium is 6.00%. An investor believes

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Question 2 (4 points) In the current economy, the risk free rate is 2%, while the market portfolio risk premium is 6.00%. An investor believes that Jericho Corporation stock will sell for $125 per share next year, and also pay a dividend of $1.00 per share in exactly one year. The beta for Jericho Corporation is 1.25, and currently shares of Jericho Corporation trade at $120.00. Based on this information, what should Jericho Corporation stock be trading at today? $113.30 $115.07 $108.97 $111.42 $110.81

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