Suppose the market risk premium is$6\%$ and the$$ risk$-$free interest rate is $4\%.$ Using the data in the$$ table$$:

Starbucks Beta: $1\mathrm{.}05/$ Hormel Beta: $0\mathrm{.}16/$ Avis Budget Group Beta: $2\mathrm{.}55$

calculate the expected return of investing in

a$.$ Starbucks$\text{'}$s stock.

b$.$ Hormel$\text{'}$s stock.

c$.$ Avis Budget Group$\text{'}$s stock.

Why$$ don't all investors hold Avis Budget Group$\text{'}$s stock rather than Hormel$\text{'}$s $$stock$?$

Part $1$

a$.$ Calculate the expected return of investing in Starbucks$\text{'}$s stock.

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

Part $2$

b$.$ Calculate the expected return of investing in Hormel$\text{'}$s stock.

The expected return of Hormel stock is $\_\_\_\%.($Round to two decimal$$ places.$)$

Part $3$

c$.$ Calculate the expected return of investing in Avis Budget Group$\text{'}$s stock.

The expected return of Avis Budget Group stock is $\_\_\_\%.($Round to two decimal$$ places.$)$