Use the following information to answer the question(s) below. Company Ticker Beta Ford Motor Company Intemational Business Machines Merck F 2.77 IBM 0.73 MRK 0.90 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: O a. 10.0%. O b. 8.0%. O c. 12.0%. O d. 10.4%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Use the following information to answer the question(s) below.
Company
Ticker
Beta
Ford Motor Company
Intemational Business Machines
Merck
F
2.77
IBM
0.73
MRK
0.90
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:
O a. 10.0%.
O b. 8.0%.
O c. 12.0%.
O d. 10.4%.
Transcribed Image Text:Use the following information to answer the question(s) below. Company Ticker Beta Ford Motor Company Intemational Business Machines Merck F 2.77 IBM 0.73 MRK 0.90 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: O a. 10.0%. O b. 8.0%. O c. 12.0%. O d. 10.4%.
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