Suppose the risk - free return is 3 . 5 % and the market portfolio has an

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Question:

Suppose the

risk

-

free return is

3.5 %

and the market portfolio has an expected return of

8.5 %

and a voatility of

15.7 % .

Merck

& Co

. (

Ticker: MRK

)

stock has a

18.2 %

volatility and a correlation with the market of

0.058 .

.

What is

Merck's beta with respect to the

market?

.

Under the CAPM

assumptions, what is its expected

return?

Posted Date: May 18, 2024 07:00 PM

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Suppose the risk - free return is 3 . 5 % and the market portfolio has an

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