The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf) is 3%.  What is the expected return of Starbucks (SBUX) stock given the below beta estimate?

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf) is 3%.  What is the expected return of Starbucks (SBUX) stock given the below beta estimate? 

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Starbucks Corporation (SBUX)
NasdaqGS - NasdaqGS Real Time Price. Currency in USD
Summary Company Outlook
Previous Close
73.78 -0.25 (-0.34%)
At close: July 2 4:00PM EDT
Open
Bid
Watchlists
Ask
Day's Range
74.03
75.04
73.80 x 900
Search for news, symbols or com
73.98 x 1000
My Portfolio
73.64-75.09
Chart
Market Cap
Beta (5Y
Monthly)
PE Ratio (TTM)
EPS (TTM)
Earnings Date
Screeners Premi
✩Add to watchlis
Conversations Stat
86.197B
0.80
26.17
2.82
Jul 28, 2020
Transcribed Image Text:yahoo! finance Finance Home Starbucks Corporation (SBUX) NasdaqGS - NasdaqGS Real Time Price. Currency in USD Summary Company Outlook Previous Close 73.78 -0.25 (-0.34%) At close: July 2 4:00PM EDT Open Bid Watchlists Ask Day's Range 74.03 75.04 73.80 x 900 Search for news, symbols or com 73.98 x 1000 My Portfolio 73.64-75.09 Chart Market Cap Beta (5Y Monthly) PE Ratio (TTM) EPS (TTM) Earnings Date Screeners Premi ✩Add to watchlis Conversations Stat 86.197B 0.80 26.17 2.82 Jul 28, 2020
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