Suppose the​ risk-free return is 3.5% and the market portfolio has an expected return of 11.9% and a volatility of 12.9% Merck​ & Co.​ (Ticker: MRK) stock has a 20.8% volatility and a correlation with the market of 0.065. a. What is​ Merck's beta with respect to the​ market? b. Under the CAPM​ assumptions, what is its expected​ return?

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