Suppose the risk$-$free return is $3\%$ and the market portfolio has an expected return of $10\%$ and a voatility of $18\%.$

Merck & Co$.($Ticker: MRK$)$ stock has a $22\%$ volatility and a correlation with the market of $0\mathrm{.}12.$

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

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