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%.

---

Definitions:

Adenohypophysis

The anterior, glandular part of the pituitary gland responsible for the release of hormones.

Neurohypophysis

The posterior portion of the pituitary gland responsible for the storage and release of hormones like ADH and oxytocin.

Corticotropin

A hormone produced by the pituitary gland that stimulates the adrenal cortex to release cortisol, involved in stress response.

Somatotropin

A growth hormone produced by the anterior pituitary gland that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.