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 3.06 Amazon 1.34...

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.

1. 
   

   Calculate the expected return from Johnson & Johnson. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

   
   


2. 
   

   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.)

   
   


3. 
   

   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.)

   
   


4. 
   

   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%.

   
   


5. 
   

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

   
   

rev: 09_25_2019_QC_CS-182289