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Problem 1 3 - 2 7 SML ( LO 4 ) Suppose you observe the following situation: Assume these securities are correctly priced. Based on

Problem 13-27 SML (LO4)
Suppose you observe the following situation:
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round
intermediate calculations. Round the final answers to 2 decimal places.)
What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.)
Risk-free rate
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