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Use the following information to answer the question(s) below. Ticker Beta F 2.77 Company Ford Motor Company International Business Machines Merck IBM 0.73 MRK 0.90

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

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