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Beta Expected Return ABC 1.05 12.3 XYZ 0.90 11.8 Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM,

	Beta	Expected Return
ABC	1.05	12.3
XYZ	0.90	11.8

Suppose you observe the following situation: Assume these securities are correctly priced. Based on the CAPM, expected return on the market? What is the risk-free rate?

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