Suppose the risk-free return is 3.5% and the market portfolio has an expected return of 11.2% and a volatility of 17.9%. Merck & Co. (Ticker: MRK) stock has a 21.5% volatility and a cor- relation with the market of 0.045. a. What is Merck's beta with respect to the market? b. Under the CAPM assumptions, what is its expected return?