QUESTION $5($B$)$$$140,0001\mathrm{.}5$

Wen Cao $($C$)$ $$130,0001\mathrm{.}1$

Joseph Kwan $($D$)$ $$200,000$

Risk$-$free asset

b$.$ Gajalani Ramachandran of Samantha Lo & Janine Clarke Securities observed the following situation:

Security Beta Expected Return

Darrell Johnston $($A$)1\mathrm{.}20\mathrm{.}15$

Yi Luo $($B$)1\mathrm{.}80\mathrm{.}20$

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk free rate?