QUESTION 6 Use the following information to answer the question(s) below. Company Ticker Beta Ford Motor Company 2.77 International Business Machines IBM 0.73 Merck MRK 0.90 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: 5.4% 10.4% 9.4% 10.0% QUESTION 7 Use the following information to answer the question(s) below. Company Ticker Beta Ford Motor Company F 2.77 International Business Machines IBM 0.73 Merck MRK 0.90 If the expected return on the market 11% and the risk-free rate is 4%, then the expected return of investing in IBM is closest to: 9.1% 12.0% 10.3% 11.0%