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

question 46

Multiple Choice

Use the following information to answer the question(s) below.
-If the expected return on the market is 11% and the risk-free rate is 4%,then the expected return of investing in IBM is closest to:

• A)9.1%.
• B)10.3%.
• C)11.0%.
• D)12.0%.

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Definitions:

Awake

The state of being conscious and aware of one's surroundings, as opposed to being asleep.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, reduced muscle activity, and inhibition of nearly all voluntary muscles during rapid eye movement (REM) sleep.

Consolidation

The process by which memories become stable in the brain; a process believed to involve the strengthening of the neural connections that form memories.

Memories

Stored information from past experiences that can be recalled.