Please help and read carefully and check your work. Please show all formulas and keep it organized.

Please read instructions very carefully. Please do NOT use excel. Please do NOT show in excel. Please TYPE SOLUTION by keyboard. Please do NOT write by hand. Please SHOW ALL WORK AND FORMULAS. PLEASE SHOW STEP BY STEP. Do NOT skip small steps. Do NOT USE any excel functions or financial calculators. Please solve and show another way WITHOUT EXCEL OR FINANCIAL CALCULATORS. Please keep solutions organized. Thank you, so much I appreciate your help.

Suppose you observe the following situation:

Security	Beta			Expected Return
Pete Corp.		1.10			.120
Repete Co.		.79			.093

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return on market

%

What is the risk-free rate?

(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

%