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Suppose that the Treasury bill rate is 6% rather than 2%. Assume the expected return on the market stays at 9%. Use the following information.

Suppose that the Treasury bill rate is 6% rather than 2%. Assume the expected return on the market stays at 9%. Use the following information.

Stock Beta ()
United States Steel 3.09
Amazon 1.35
Southwest Airlines 1.23
The Travelers Companies 1.18
Tesla 0.98
ExxonMobil 0.92
Johnson & Johnson 0.93
Coca-Cola 0.58
Consolidated Edison 0.15
Newmont 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 6% 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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