10. Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a volatility of 16.0%.Merck & Co. (Ticker: MRK) stock has a

20.0% volatility and a correlation with the market of 0.060.

a. What is Merck's beta with respect to the market?

b. Under the CAPM assumptions, what is its expected return?

a. What is Merck's beta with respect to the market?

Merck's beta with respect to the market is- ?

(Round to three decimal places.)

b. Under the CAPM assumptions, what is its expected return?

Under the CAPM assumptions, its expected return is----------------------%?

(Round to two decimal places.)