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Suppose that the Treasury bill rate is 4% and the expected return on the market stays at 9%. Use the following information Beta (9) Stock

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Suppose that the Treasury bill rate is 4% and the expected return on the market stays at 9%. Use the following information Beta (9) Stock Caterpillar Dow Chemical 1.55 Ford Microsoft Apple Johnson & Johnson Walmart Campbell Soup Consolidated Edison Newmont 1.34 088 0.97 0.63 0.55 0.29 0.23 0.00 a. Calculate the expected return from Johnson & Johnson. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return b. Find the highest expected return that is offered by one of these stocks. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal p Highest expected return c. Find the lowest expected return that is offered by one of these stocks (Do not round Intermediate calculations. Enter your answer as a percent rounded to the nearest w number) Lowest expected return d. Would Ford offer a higher or lower expected return if the interest rate were 2% rather than 4% 7 Assume that the expected market retur stays at 9 Higher Lower . Would Walmart offer a higher or lower expected retur if the interest rate were 8% rather than 4% Assume the expected market return stays at 9 Higher Lower

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