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

question 23

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 Merck is closest to:

• A)5.4%.
• B)9.4%.
• C)10.0%.
• D)10.4%.

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Definitions:

Cartilage Skeleton

A type of skeletal structure found in certain animals, including sharks and rays, that is made entirely of cartilage rather than bone.

Electric Currents

The flow of electric charge through a conductor, which can be used for power generation, heating, lighting, and as a signal in electronics.

Gill Arches

The skeletal elements supporting the gills in fish and some amphibians, essential for respiration in aquatic environments.

Cranium

The part of the skull that encloses the brain.