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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