Suppose the market risk premium is $4\%$ and the risk$-$free interest rate is $2\%.$ Using the data in the table, $,$ calculate

the expected return of investing in

a$.$ Starbucks's stock.

b$.$ Hormel's stock.

c$.$ Avis Budget Group's stock.

Why don't all investors hold Avis Budget Group's stock rather than Hormel's stock?

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$