Please answer subpart a and b Suppose the risk-free return is 2.3% and the market portfolio has an expected return of 11.7% and a voatility of 12.7%.Merck & Co. (Ticker: MRK) stock has a 17.3% volatility and a correlation with the market of 0.045.a. What is Merck's beta with respect to the market?b. Under the CAPM assumptions, what is its expected return?Question content area bottomPart 1a. What is Merck's beta with respect to the market? Merck's beta with respect to the market is (Round to three decimalplaces.)Part 2b. Under the CAPM assumptions, what is its expected return? Under the CAPM assumptions, its expected return is (Roundto two decimal places.)

Beta = (Correlation with market x Volatility of stock)/ Volatility of marketBeta = (0.045 x 17.3)/…

Suppose the risk-free return is 2.3% and the market portfolio has an expected return of 11.7% and a voatility of 12.7%. Merck & Co. (Ticker: MRK) stock has a 17.3% volatility and a correlation with the market of 0.045. a. What is Merck's beta with respect to the market? b. Under the CAPM assumptions, what is its expected return?