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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:
A) 5.4%
B) 9.4%
C) 10.0%
D) 10.4%
Textbook 
Corporate Finance: The Core
Edition: 4th
Authors:
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A year ago
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B
Explanation:  B) Return = .04 + 0.9(.06) = .094
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