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Suppose you observe the following situation: Peat Co. has a beta of 1.05 and expected return 0.123, and Re-Peat Co. has a reward- to-risk ratio

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Suppose you observe the following situation: Peat Co. has a beta of 1.05 and expected return 0.123, and Re-Peat Co. has a reward- to-risk ratio of 0.033. Assume these securities are correctly priced. Based on the CAPM, What is the risk-free rate? And what is the expected return on the market? a. 0.158; 0.1247 b. 0.158; 0.4256 c. 0.088; 0.289 d. 0.088; 0.1213

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