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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 rather than the Assume that the expected return on the market stays at 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 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 decimal places and enter your
"Expected risk premium" answer as a percent rounded to 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 decimal places and enter your
"Expected risk premium" answer as a percent rounded to decimal places.
d Would US Steel offer a higher or lower expected return if the interest rate were rather than Assume that the expected
market return stays at
Note: Round your "Sensitivity" answers to decimal places and enter your "Expected risk premium" answer as a percent
rounded to decimal places.
e Would CocaCola offer a higher or lower expected return if the interest rate were
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