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Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a volatility of 16.0%. Merck & Co. (Ticker:

Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a volatility of 16.0%. Merck & Co. (Ticker: MRK) stock has a 20.0% volatility and a correlation with the market of 0.060. a. What is Merck's beta with respect to the market? .075 b. Under the CAPM assumptions, what is its expected return? ____

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