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QUESTION 7 Use the following information to answer the question(s) below. Company Ford Motor Company International Business Machines Merck Ticker F IBM MRK Beta 2.77

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QUESTION 7 Use the following information to answer the question(s) below. Company Ford Motor Company International Business Machines Merck Ticker F IBM MRK Beta 2.77 0.73 0.90 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: 4.5%. 3.0%. 4.0%. O 5.0%

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