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Suppose you observe the following situation Expected Return 0.140 Security Pete Corp. Beta 1.30 Repete Co. 0.99 0.113 Assume these securities are correctly priced. Based

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Suppose you observe the following situation Expected Return 0.140 Security Pete Corp. Beta 1.30 Repete Co. 0.99 0.113 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. What is the risk-free rate? (Do not round intermediate calculations. Round the final answer decimal places.) to 3 Risk-free rate 0%

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