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suppose the risk-free return is 2.7% and the market portfolio has an expected return of 7.1% and a volatility of 16.7%. Merck & Co. (Ticker:
suppose the risk-free return is 2.7% and the market portfolio has an expected return of 7.1% and a volatility of 16.7%. Merck & Co. (Ticker: MRK) stock has a 19.7% volatility and a correlation with the market of 0.042.
A) What is Merck's beta with respect to the market? (rohnd to 3 decimal places)
B) Under the CAPM assumptions, what is the expected return? (Round to 2 decimal places)
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