Suppose the risk$-$free return is $2\mathrm{.}8\%$ and the market portfolio has an expected return of $8\mathrm{.}1\%$ and a voatility of $12\mathrm{.}7\%.$

Merck & Co$.($Ticker: MRK$)$ stock has a $17\mathrm{.}8\%$ volatility and a correlation with the market of $0\mathrm{.}054.$

a$.$ What is Merck's beta with respect to the market?

b$.$ Under the CAPM assumptions, what is its expected return?

a$.$ What is Merck's beta with respect to the market?

Merck's beta with respect to the market is $.($Round to three decimal places.$)$

b$.$ Under the CAPM assumptions, what is its expected return?

Under the CAPM assumptions, its expected return is $\%.($Round to two decimal places.$)$