A what is mercks beta with respect to the market b under


Suppose the risk-free return is 2.7% and the market portfolio has an expected return of 7.2% and a volatility of 15.4%. Merck& Co.(Ticker: MRK) stock has a 18.5% volatility and a correlation with the market of 0.064.

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

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

Solution Preview :

Prepared by a verified Expert
Finance Basics: A what is mercks beta with respect to the market b under
Reference No:- TGS01572428

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)