Suppose the risk$-$free return is $3\%$ and the market portfolio has an expected return of $12\%$ and a volatility

of $14\%.$ Merck Inc.$\text{'}$s stock has a $16\%$ volatility and a correlation with the market of $0\mathrm{.}66.$

What is Merck's beta with the market?

a$)1\mathrm{.}10$

b$)0\mathrm{.}90$

c$)0\mathrm{.}85$

d$)0\mathrm{.}75$

What is the expected return for Merck Inc.?

a$)8\mathrm{.}78\%$

b$)9\mathrm{.}56\%$

c$)9\mathrm{.}79\%$

d$)10\mathrm{.}12\%$