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

question 23

Multiple Choice

Use the following information to answer the question(s) below.
-If the market risk premium is 6% and the risk-free rate is 4%,then the expected return of investing in Merck is closest to:

• A)5.4%.
• B)9.4%.
• C)10.0%.
• D)10.4%.

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Definitions:

Proportion

A part or segment expressed as a fraction of the whole.

Statistic

A numerical value derived from a sample that is used to estimate properties of the population from which it was drawn.

Marketing Majors

Students who specialize in the study of marketing strategies, consumer behavior, and market research as part of their academic education.

Parameter

A measurable attribute that defines or limits the characteristics of a population or a statistical model.