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Suppose you are given the following information: ABC Corporation: Expected Return = 10.18%, Beta = 1.06 XYZ Corporation: Expected Return = 12.69%, Beta = 1.41

Suppose you are given the following information:

ABC Corporation: Expected Return = 10.18%, Beta = 1.06

XYZ Corporation: Expected Return = 12.69%, Beta = 1.41

Assume that both assets are priced correctly according to CAPM. Calculate the following:

Risk-free Rate = %

Market Risk Premium = %

Express your answers in percentage terms, rounded to 2 decimal places (ie 10.25)

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