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:

Observational Data

Information collected through directly witnessing or recording physical occurrences and behaviors, without manipulating the environment or subjects.

Primary Data

Information collected directly by researchers through surveys, interviews, or experiments, specifically for their study’s purpose.

Facts And Figures

Quantifiable data and statistical information used to support arguments, make decisions, or present information in a clear and concise manner.

Newly Collected

Recently gathered information or data that has not been previously recorded or analyzed.