Suppose the risk-free return is

4.6%

and the market portfolio has an expected return of

8.8%

and a standard deviation of

16%.

Johnson & Johnson Corporation stock has a beta of

0.77.

What is its expected return?

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Part 1

The expected return is

enter your response here%.

(Round to two decimal places.)

Suppose the risk-free return is 4.6% and the market portfolio has an expected return of 8.8% and a standard deviation of 16%. Johnson \& Johnson Corporation stock has a beta of 0.77. What is its expected return? The expected return is %. (Round to two decimal places.)