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%.

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Definitions:

Liberal Arts

A broad field of study that encompasses arts, sciences, and humanities, aimed at cultivating general intellectual abilities rather than technical or professional skills.

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The period roughly from 1830 to 1870, characterized by significant industrial, social, and political changes globally.

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Broad streets often lined with trees and designed for aesthetic appeal and efficient traffic flow in urban areas, sometimes used for public gatherings or parades.

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Architectural structures designed and constructed to have a consistent or standardized appearance, often within a particular area or development.