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

question 73

Multiple Choice

Use the following information to answer the question(s) below.
-If the expected return on the market is 11% and the expected return of investing in Merck is 10.35%,then the risk-free rate must be:

• A)3.0%.
• B)4.0%.
• C)4.5%.
• D)5.0%.

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Definitions:

Previous Ownership

The state or fact of owning something before the current holder, often relevant in determining the legality or history of property or goods.

Best Available Control Technology

A term mainly used in environmental management, referring to the best methods, strategies, or equipment available to control pollution and minimize environmental impact.

Asphalt Factory

A manufacturing facility where asphalt is produced, often used for road construction and repair.

Nonpoint Source

Diffuse areas of pollution not traceable to any single point, typically resulting from rainfall or snowmelt moving over and through the ground.