Question: Question in the picture Assignment 2 i Saved Help Save & Exit Submit Suppose that the Treasury bill rate is 6% rather than 2%. Assume

Question in the picture

Question in the picture Assignment 2 i Saved Help
Assignment 2 i Saved Help Save & Exit Submit Suppose that the Treasury bill rate is 6% rather than 2%. Assume the expected return on the market stays at 9%. Use the following information. 18 Stock Beta ( B ) United States Steel 3. 06 Amazon 1. 34 Southwest Airlines 1. 26 The Travelers Companies 1. 21 Tesla 0. 95 Exxonmobil 0. 89 Johnson & Johnson 0. 92 Coca-Cola 0. 61 Consolidated Edison 0. 12 Newmont 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 6% 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. Expected return % b . Highest Expected return % C. Lowest expected return Would U.S. Steel offer a higher or lower expected return? Would Coca-cola offer a higher or lower expected return? Mc

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