Suppose the market risk premium is 6% and the​ risk-free interest rate is 6%. Using the data in the​ table, calculate the expected return of investing in a. ​Starbucks' stock. b.​ Hershey's stock. c.​ Autodesk's stock. Why​ don't all investors hold​ Autodesk's stock rather than​ Hershey's stock

Essentials Of Investments
11th Edition
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 6%. Using the data in the​ table, calculate the expected return of investing in
a. ​Starbucks' stock.
b.​ Hershey's stock.
c.​ Autodesk's stock.
Why​ don't all investors hold​ Autodesk's stock rather than​ Hershey's stock
Data table
(Click on the following icon g in order to copy its contents into a spreadsheet.)
Starbucks
Hershey
Autodesk
Beta
0.80
0.33
1.72
Transcribed Image Text:Data table (Click on the following icon g in order to copy its contents into a spreadsheet.) Starbucks Hershey Autodesk Beta 0.80 0.33 1.72
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