Review the table below. Beta is a measure of sensitivity, showing how the returns of an individual investment compare to the returns of the Market as a whole. Beta is measured by analyzing actual historic Market returns. Starbucks sells coffee. What might explain why a company like Starbucks has its Beta at that level ?

Company Beta

US Steel 1.77

Ford Mo Co 1.31

General Electric 1.20

Boeing 0.94

Amazon 0.90

Starbucks 0.79

McDonalds 0.51

Walmart 0.26

Market Details

Current T-Bill Price 985.12

Historic Average T-Bill Return 2.3%

Current Market Return 8.5%

Historic Average Market Return 8.9%