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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 United States Steel Amazon Southwest Airlines The Travelers Companies Tesla ExxonMobil Johnson & Johnson Coca-Cola Consolidated Edison Newmont Beta (B) 3.02 1.46 1.34 1.25 0.95 0.83 0.82 0.69 0.12 0.10 a. Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations, Enter your answers as a percent rounded to 2 decimal places.) b. 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.) c. 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.) 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%. e. Would Coca-Cola offer a higher or lower expected return if the interest rate were 8%
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