. Suppose the market risk premium is 5% and the risk-free interest rate is 5%. Using the data in the table below, calculate the expected return of investing in

a. Starbuck's stock.

b. Hershey's stock.

c. Autodesk's stock.

Starbucks Hershey Autodesk

Beta 1.20 0.28 2.14

a.) Starbuck's stock.

The expected return of Starbucks stock is ......%. (Round to two decimal places.)

b.) Hershey's stock.

The expected return of Hershey stock is.... %. (Round to two decimal places.)

c.) Autodesk's stock.

The expected return of Autodesk stock is.... %. (Round to two decimal places.)

Part b. Suppose the market risk premium is 6.6% and the risk-free interest rate is 4.9%.

Calculate the cost of capital of investing in a project with a beta of 1.1.

The cost of capital is..... %. (Round to two decimal places.)