T4-07. John has invested in a portfolio containing two stocks: He has $300,000 worth of Netflix and $100,000 worth of Starbucks. The attached image shows the information on the two stocks (The number in large bold type is the current share price for each stock.) At present, the market rate is 5%, and the risk-free rate is 2%. According to the Capital Asset Pricing Model, what is the expected rate of return on John's Portfolio? Starbucks Corporation (SBUX) NasdaqGs - NasdaqGs Real Time Price. Currency in USD * Add to watchlist Netflix, Inc. (NFLX) * Add to watchlist NasdaqGs - NasdaqGS Real Time Price. Currency in USD 498.31 +0.79 (+0.16%) At close: December 4 4:00PM EST Summary Company Outlook Chart Conversations 102.28 +2.17 (+2.17%) At close: December 4 4:00PM EST Statis Summary Company Outlook @ Chart Conversations Stati: Previous Close 497.52 Market Cap 220.151B Previous Close 100.11 Market Cap 120.046B Open 497.50 Beta (5Y Monthly) 0.93 Open 101.35 Beta (5Y Monthly) 0.81 Bid 0.00 x 2900 PE Ratio (TTM) 80.48 Bid 0.00 x 1300 PE Ratio (TTM) 129.47 Ask 0.00 x 800 EPS (TTM) 6.19 Ask 0.00 x 900 Day's Range 493.64.504.44 Earnings Date Jan 19, 2021 - Jan 25, 2021 Day's Range 101.08 - 102.94 EPS (TTM) 0.79 Earnings Date Jan 26, 2021 - Feb 01, 2021 Forward Dividend & Yield 1.80 (1.76%) Ex-Dividend Date Nov 10, 2020 52 Week Range 290.25 -575.37 Forward Dividend & Yield N/A (N/A) 52 Week Range 50.02 - 102.94 Volume 3,666,243 Ex-Dividend Date N/A Volume 6,952,704 Avg. Volume 5,499,839 1y Target Est 548.37 Avg. Volume 6,811,714 1y Target Est 97.40 Select one: O a 4.790% O b. 4.700% O c. 4.610% O d. 6.267%