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:

Ernst Barlach

A German expressionist sculptor, printmaker, and writer known for his works that emphasize the suffering of humanity.

Güstrow Cathedral

A historic brick Gothic cathedral located in Güstrow, Germany, noted for its architectural beauty and historical significance.

Naum Gabo's Column

An artistic sculpture by Naum Gabo, a pioneer of constructivism, known for its use of abstract geometric forms in representing thematic concepts.

Constructivist

Constructivism is an artistic and architectural philosophy that originated in Russia in the early 20th century, emphasizing abstract, geometric forms and the use of modern materials to reflect modern social functions and values.