Use the Following Information to Answer the Question(s)below

question 94

Multiple Choice

Use the following information to answer the question(s) below.
-If the market risk premium is 6% and the risk-free rate is 4%,then the expected return of investing in Ford Motor Company is closest to:

• A)10.0%.
• B)16.2%.
• C)17.1%.
• D)20.6%.

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Definitions:

Western Hemisphere

The half of the Earth that lies west of the Prime Meridian (which crosses Greenwich, London, England) to the International Date Line, comprising the Americas and their surrounding waters.

Freeholders

Historically, individuals who owned their land outright, without owing feudal duties or rents to a superior, often having specific political rights or privileges in their locality.

Suffrage

The entitlement to participate in political elections by casting a vote.