A stock has an expected return of 13.0 percent, a beta of 1.20, and the expected return on the market is 11.63 percent. What must the risk-free rate be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Risk-free rate

%

Suppose you observe the following situation:

Security	Beta	Expected Return
Peat Co.	1.20	14.6
Re-Peat Co.	.60	10.3

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Expected return	%
Risk-free rate	%