Suppose the risk-free return is 2.3% and the market portfolio has an expected return of 7.2% and
Question:
Suppose the risk-free return is 2.3% and the market portfolio has an expected return of 7.2% and a volatility of 13.8%. Merck & Co. (Ticker: MRK) stock has a 18.2% volatility and a correlation with the market of 0.051.
a. What is Merck’s beta with respect to the market?
b. Under the CAPM assumptions, what is its expected return?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: