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

question 70

Multiple Choice

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%.

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Definitions:

Necessary

In legal and philosophical terms, necessary refers to something required, indispensable, or absolutely needed to achieve a certain outcome or fulfill a condition.

Rescission

The process of formally terminating a contract, returning all involved parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for particularly harmful actions and deter similar future conduct.

Misrepresents

The act of providing false, misleading, or incorrect information about a material fact, intentionally or otherwise.