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

question 70

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Use the following information to answer the question(s) below. Use the following information to answer the question(s) below.   -If the risk-free rate is 5% and the expected return of investing in Merck is 11.3%,then the expected return on the market must be: A) 8.0%. B) 10.0%. C) 10.4%. D) 12.0%.
-If the risk-free rate is 5% and the expected return of investing in Merck is 11.3%,then the expected return on the market must be:


Definitions:

One-Tailed Test

A directional test, reflecting a directional hypothesis.

Two-Tailed Test

A nondirectional test, reflecting a nondirectional hypothesis.

Null Hypothesis

A statement in statistics that there is no effect or no difference, serving as the starting point for hypothesis testing.

One-Tailed Hypothesis

A directional hypothesis that specifies an expected direction of the effect or relationship between variables.

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