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...

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?

Jun 05, 2022

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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...

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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...

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Related Questions & Answers

Submit New Assignment

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...