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:

Voluntary Responses

Actions that are under conscious control, often in contrast to reflexive or automatic responses.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without the need for learning.

Classical Conditioning

An educational method where pairing two stimuli repeatedly results in a response initially triggered by the second stimulus becoming triggered by the first stimulus alone.

Pavlov

Renowned for his work in classical conditioning, signifying the learning process through which a neutral stimulus becomes associated with a meaningful stimulus.