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Suonut Problem 13-27 SML (L04) Suppose you observe the following situation Security Seta Expected Return Pete Corp. 1.95 e. 205 Repete Co. 1.64 e. 178

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Suonut Problem 13-27 SML (L04) Suppose you observe the following situation Security Seta Expected Return Pete Corp. 1.95 e. 205 Repete Co. 1.64 e. 178 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.) Expected Return on Market Pete Corp Repete Co.

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