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Suppose that the Treasury bill rate is 5% rather than 2%. Assume the expected return on the market stays at 9%. Use the following information.

Suppose that the Treasury bill rate is 5% rather than 2%. Assume the expected return on the market stays at 9%. Use the following information.

Stock Beta ()
United States Steel 3.10
Amazon 1.36
Southwest Airlines 1.24
The Travelers Companies 1.17
Tesla 0.99
ExxonMobil 0.93
Johnson & Johnson 0.92
Coca-Cola 0.59
Consolidated Edison 0.16
Newmont 0.10

Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Find the highest expected return that is offered by one of these stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Find the lowest expected return that is offered by one of these stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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%.

Would Coca-Cola offer a higher or lower expected return if the interest rate were 8%?

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