Suppose the$$ risk$-$free return is $3\mathrm{.}5\%$ and the market portfolio has an expected return of $8\mathrm{.}5\%$ and a voatility of $15\mathrm{.}7\%.$ Merck$$ & Co$.($Ticker: MRK$)$ stock has a $18\mathrm{.}2\%$ volatility and a correlation with the market of $0\mathrm{.}058.$

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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Part $1$

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

$$Merck$\text{'}$s beta with respect to the market is

$$

enter your response here. $($Round to three decimal$$ places.$)$

Part $2$

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

Under the CAPM$$ assumptions, its expected return is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$