Suppose the market risk premium is 6% and the​ risk-free interest rate is 5% . Using the data in the​ table, calculate the expected return of investing in a. ​Starbucks' stock. b.​ Hershey's stock. c.​ Autodesk's stock.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose the market risk premium is 6% and the​ risk-free interest rate is 5% . Using the data in the​ table, calculate the expected return of investing in
a. ​Starbucks' stock.
b.​ Hershey's stock.
c.​ Autodesk's stock.

(Click on the following icon in order to copy its contents into a spreadsheet.)
Hershey
0.33
Beta
Starbucks
0.80
Autodesk
1.72
Transcribed Image Text:(Click on the following icon in order to copy its contents into a spreadsheet.) Hershey 0.33 Beta Starbucks 0.80 Autodesk 1.72
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