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Suppose you observe the following situation: Beta Security Peat Co. Re-Peat Co. Expected Return 11.0 9.9 1.20 .65 Assume these securities are correctly priced. Based

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Suppose you observe the following situation: Beta Security Peat Co. Re-Peat Co. Expected Return 11.0 9.9 1.20 .65 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Expected return Risk-free rate % %

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