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:

Self-Assessment

The process of evaluating one’s own performance, strengths, and weaknesses.

Job Hunt

The process of actively seeking employment opportunities.

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An official document issued by a company or organization, summarizing its operations, financial performance, and future outlook over the past year.

Company

An organization engaged in commercial, industrial, or professional activities, often constituted legally as a unit.