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

question 46

Multiple Choice

Use the following information to answer the question(s) below.
-If the expected return on the market is 11% and the risk-free rate is 4%,then the expected return of investing in IBM is closest to:

• A)9.1%.
• B)10.3%.
• C)11.0%.
• D)12.0%.

---

Definitions:

Basic Elements

Fundamental components or building blocks of a complex structure or concept.

Observing Behavior

The act of monitoring and recording the behavior of oneself or others without influencing or intervening.

Watson and Skinner

Psychologists John B. Watson and B.F. Skinner, pioneers in behaviorism, emphasizing the study of observable behavior and the effects of learning and environmental factors.

Freud and James

Sigmund Freud, a founder of psychoanalysis, and William James, a pioneering psychologist, both significantly contributed to the understanding of human psychology through their work.