Suppose that the Treasury bill rate is 5% and the expected return on the market stays at 9%.Use the following information.

Stock	Beta ()
Caterpillar	1.67
Dow Chemical	1.64
Ford	1.43
Microsoft	0.97
Apple	0.92
Johnson & Johnson	0.54
Walmart	0.46
Campbell Soup	0.38
Consolidated Edison	0.18
Newmont	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 places.)

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 whole number.)

Lowest expected return %

d. Would Ford offer a higher or lower expected return if the interest rate were 2% rather than 5%? Assume that the expected market return stays at 9%.

Higher

Lower

e. Would Walmart offer a higher or lower expected return if the interest rate were 8% rather than 5%?Assume the expected market return stays at 9%.

Higher

Lower