Question: Suppose that the Treasury bill rate is 5% rather than 3%. Assume that the expected return on the market stays at 14%. Use the following
| Suppose that the Treasury bill rate is 5% rather than 3%. Assume that the expected return on the market stays at 14%. Use the following information. |
| Stock | Beta () |
| A | 2.36 |
| B | 1.95 |
| C | 1.53 |
| D | 1.40 |
| E | 1.42 |
| F | 1.08 |
| G | 0.79 |
| H | 0.71 |
| I | 0.70 |
| J | 0.42 |
| a. | Calculate the expected return from H. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| b. | Find the highest expected return that is offered by one of these stocks. (Do not round intermediate calculations. Round your answer to 2 decimal places. |
| c. | Find the lowest expected return that is offered by one of these stocks. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
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