Help Seve Problem 8-14 CAPM Suppose that the Treasury bill rate is 5% rather than 2%. Assume the expected return on the market stays at 9%. Use the following Information. 22:02 Stock United States Steel Amazon Southwest Airlines The Travelers Companies Tesla ExxonMobil Johnson & Johnson Coca-Cola Consolidated Edison Newmont Beta (B) 3.04 1.44 1.32 1.23 0.97 0.85 0.84 0.67 0.14 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 5% 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%? a. b. Expected return Highest Expected return Lowest expected return Would U.S. Steel offer a higher or lower expected return? Would Coca-Cola offer a higher or lower expected return? 6. Prev 4 of 8 Next >