Suppose that the Treasury bill rate is 5% rather than 3%. Assume that the expected return on the market stays at 12%. Use the following information.
Stock Beta (β)
Dow Chemical 2.22
Bank of America 2.15
Ford 1.65
Exxon Mobil 1.64
Starbucks 1.70
IBM 1.20
Newmont Mining 0.95
Pfizer 0.87
Walmart 0.90
Heinz 0.54
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 %