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Security Beta Expected Return Pete Corp. 1.55 .165 Repete Co. 1.24 .138 Assume these securities are correctly priced. Based on the CAPM, what is the

Security Beta Expected Return

Pete Corp. 1.55 .165

Repete Co. 1.24 .138

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Round to 2 decimal places.)

What is the risk-free rate? (Round to 2 decimal places.)

Please explain each step to the solutions in detail.

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