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TABLE 12.1 Betas for Beta selected common stocks January 2011-December 2015 U.S. Steel 1.85 Disney 1.42 Ford 1.31 1.20 General Electri 1.19 Monsanto Boelng 1.01

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TABLE 12.1 Betas for Beta selected common stocks January 2011-December 2015 U.S. Steel 1.85 Disney 1.42 Ford 1.31 1.20 General Electri 1.19 Monsanto Boelng 1.01 Unlon Paciflc 1.00 0.96 Alphabet ExxonMobl 0.94 0.93 Amazorn Intel 0.91 0.90 Pfizer 0.79 Starbucks IBM 0.59 0.51 McDonald's Coca-Cola 0.49 Campbell Soup 0.47 Walmart 0.26 Newmont Mining 0.24 0.23 PG&E Note: Betas are calculated from 5 years of monthly data. Suppose that the Treasury bil rate is 6% rather han 4%, as we assumed in able questions and the expected retur on the market s 1 Use he be as that able to answer e o o ng a. Calculate he expected retum rom Pfizer Do not round intermediate calculations nter your answer as a percent rounded to decimal place. Expected return b. What is the highest expected return offered by one of these stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Expected return c. What is the lowest expected return offered by one of these stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Expected return

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