Suppose you observe the following situation as described in the table Assume these securities are correctly priced please show work security beta expected return pete corp 1 25 0 139 repete corp 0 92 0 105 Based on the CAPM, what is the risk free rate (Round to the nearest four decimal places) Based on the CAPM, what is the expected return on the market (Round to the nearest four decimal places)

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Suppose you observe the following situation as described in the table. Assume these securities are correctly priced. please show work security beta expected return pete

Suppose you observe the following situation as described in the table. Assume these securities are correctly priced. please show work

security	beta	expected return
pete corp	1.25	0.139
repete corp	0.92	0.105

Based on the CAPM, what is the risk-free rate? (Round to the nearest four decimal places)

Based on the CAPM, what is the expected return on the market? (Round to the nearest four decimal places)

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