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

Stock  Beta (?) 
A  1.78

B  1.54

C  1.53

D  0.98

E  0.95

F  0.80

G  0.75

H  0.66

I 
0.42 
J 
0.40 
a. 
Calculate the expected return from H. (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 C
offer a higher or lower expected return if the Treasury bill
interest rate were 6% rather than 2%?
 

e.  Assume that the expected market
return stays at 10%. Would J offer a higher or lower expected
return if the interest rate were 6% rather than 8%?  

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This question was answered on: Dec 08, 2020
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STATUSAnswered
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DATE ANSWEREDDec 08, 2020
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