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5. Suppose you observe the following situation: Security Pete Corp. Repete Corp. Beta 0.8 1.1 Expected Return 0.12 0.16 Assume these securities are correctly priced.

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5. Suppose you observe the following situation: Security Pete Corp. Repete Corp. Beta 0.8 1.1 Expected Return 0.12 0.16 Assume these securities are correctly priced. Based on the CAPM, what is the return on the market? A. 13.99 percent B. 14.42 percent C. 14.67 percent D. 14.78 percent E. 15.01 percent

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