The liabilities side of Cox Chemicals balance sheet has the following components:

Security	Beta	Market Value ($ millions)
Supersenior Debt	0	28
Senior Debt	0.1	250
Junior Debt	0.15	75
Equity	0.9	340

Calculate the expected return on assets for Cox. The risk-free rate is 5% and expected market return is 11%. Ignore taxes. [Hint: The asset return or asset beta formula can simply be extended to multiple types of debt]

	9.08%
	9.87%
	7.96%
	8.43%