Suppose that the Treasury bill rate is 8% rather than 4%, as we assumed in Table 12.1, and the expected return on the market is 13%. Use the betas in that table to answer the following questions. a. When you assume this higher risk-free interest rate, what is your assumption about the rate of return on the market portfolio? b. Calculate the highest expected return for the stocks in Table 12.1. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. Calculate the lowest expected return for the stocks in Table 12.1. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) d. Will Ford offer a higher or lower expected return if the interest rate is 8% rather than 4%? e. Will Walmart offer a higher or lower expected return if the interest rate is 8% rather than 4%? a. Market return b. % C. % Expected return Expected return Ford's expected return Walmari's expected return d. e. Ticker TABLE 12.1 Betas for selected common stocks, January 2013-December 2017 Company Beta X U.S. Steel 3.01 MRO Marathon Oil 2.39 AMZN Amazon 1.47 DIS 1.39 Disney Ford 1.26 BA Boeing 1.24 INTC Intel 1.07 GE GE 1.06 PFE Pfizer 1.02 IBM IBM 0.94 GOOG 0.94 UNP Alphabet Union Pacific Exxon Mobil 0.90 XOM 0.82 SBUX 0.75 KO Starbucks Coca-Cola McDonald's 0.70 MCD 0.68 CPB 0.40 WMO 0.37 Campbell Soup Walmart Pacific Gas & Electric Newmont Mining PCG 0.15 NEM 0.10