Shares of Incorporated stock trade at $400 today. Analysts believe that the stock will trade at $435 in exactly one year. Currently, the risk free rate is 0.50%, while the market portfolio risk premium is 6%. The stock is fairly priced. Suppose that the Federal Reserve raises interest rates and the risk free rate is increased to 1.25%. (assume that the market portfolio risk premium stays the same) If analysts still believe that the stock will trade at $435 in one year, what must the current priced adjust to? $397.26 $398.23 $396.23 $422.22 $401.44