Business, 25.11.2021 06:00 davidreed11

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. Stock Beta (β) United States Steel 3.01 Amazon 1.47 Southwest Airlines 1.35 The Travelers Companies 1.26 Tesla 0.94 ExxonMobil 0.82 Johnson & Johnson 0.81 Coca-Cola 0.70 Consolidated Edison 0.11 Newmont 0.10 Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 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.) 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.) 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%. Would Coca-Cola offer a higher or lower expected return if the interest rate were 8%?

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Suppose that the Treasury bill rate is 6% rather than 2%. Assume the expected return on the market s...