QUESTION 3 Tom's portfolio consists solely o an investment in Merck stock. Merck has an expected return of 1 % and a volati it of 2 X. he mar e ort i has an expected return of anda olatilit. of 18%. The risk-free rate is 4%. Assume that the CAPM assumptions hold in the market. Assuming that Tom wants to maintain the current expected return on his portfolio, then the minimum volatility that Tom could achieve by investing in the market portfolio and risk-free investment is closest to: 18% 25% O 20% O 22%