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Suppose the market risk premium is 6% and the risk-free interest rate is 4%. Using the data in the table below, calculate the expected return
Suppose the market risk premium is 6% and the risk-free interest rate is 4%.
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 |
Why don't all investors hold Autodesk's stock rather than Hershey's stock?
a. Starbuck's stock.
The expected return of Starbucks stock is %. (Round to two decimal places.)
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