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Suppose the risk - free return is 3 . 5 % and the market portfolio has an expected return of 8 . 5 % and

Suppose the risk-free return is 3.5% and the market portfolio has an expected return of 8.5% and a voatility of 15.7%. Merck & Co.(Ticker: MRK) stock has a 18.2% volatility and a correlation with the market of 0.058.
a. What is Merck's beta with respect to the market?
b. Under the CAPM assumptions, what is its expected return?

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