Starbucks Company common stock is currently selling for $40 per share. Security analysts at Goldman Sachs have assigned the following probability distribution to the price of (and rate of return on) Starbucks stock one year from now: Price Rate of Return Probability $30 -25% 0.05 $35 -12.5% 0.55 $40 0% 0.25 $45 +12.5% 0.15 Assuming that Starbucks is not expected to pay any dividends during the coming year, determine the expected rate of return on Starbucks Stock

-5.625%

-25.00%

-8.333%

-6.250%