Suppose that the Treasury bill rate is 6% rather than 2%. Assume that the expected return on the market stays at 10%. Use the following information.

Stock	Beta (?)
Dow Chemical	1.78
Bank of America	1.54
Ford	1.53
Exxon Mobil	0.98
Starbucks	0.95
IBM	0.80
Newmont Mining	0.75
Pfizer	0.66
Walmart	0.42
Heinz	0.40

a.	Calculate the expected return from Pfizer. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expected return

%

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.)

Highest expected return

%

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.)

Lowest expected return

%

d.

Assume that the expected market return stays at 10%. Would Ford offer a higher or lower expected return if the Treasury bill interest rate was 6% rather than 2%?

	Higher
	Lower

e.

Would Walmart offer a higher or lower expected return if the interest rate were 8%?

	Higher
	Lower