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Suppose that the Treasury bill rate is 5 % rather than the 2 % . Assume that the expected return on the market stays at

Suppose that the Treasury bill rate is 5% rather than the 2%. Assume that the expected return on the market stays at 9%. Use the
following information.
a. Calculate the expected return from Johnson & Johnson.
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
b. Find the highest expected return that is offered by one of these stocks.
Note: Do not round intermediate calculations.Round your "Sensitivity" answers to 2 decimal places and enter your
"Expected risk premium" answer as a percent rounded to 2 decimal places.
c. Find the lowest expected return that is offered by one of these stocks.
Note: Do not round intermediate calculations. Round your "Sensitivity" answers to 2 decimal places and enter your
"Expected risk premium" answer as a percent rounded to 2 decimal places.
d. Would U.S. Steel offer a higher or lower expected return if the interest rate were 5% rather than 2%? Assume that the expected
market return stays at 9%.
Note: Round your "Sensitivity" answers to 2 decimal places and enter your "Expected risk premium" answer as a percent
rounded to 2 decimal places.
e. Would Coca-Cola offer a higher or lower expected return if the interest rate were 8%?
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