Problem 13-27 SML (LO4) Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.00 0.69 Expected Return 0.110 0.083 What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate % 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.) Pete Corp. Repete Co. Expected Return on Market % %