Suppose that in the coming year, you expect Exxon-Mobil stick to have a volatility of 42% and a beta of 0.9, and Merck's stock to have a volatility of 24% and a beta of 1.1.The risk free interest rate is 4% and the market's expected return is 12%. Which stock has a higher systematic or market risk?

Merck since it has a lower volatility.

Merck since it has a higher Beta.

Exxon-Mobil since it has a higher volatility.

Exxon-Mobil since it has a lower beta.