Suppose you observe the following situation Peat Co, hos a beta of 105 and espected return 0.23 and Re-Peot Co, hosareward-to-risk rotio ot

o033. Asume thete securitien are corectly priced. Baced on the CA/M Whot is the risk-tree rota? And whot i the aspected return on the market?

a) 0.088, 0.1213

b) 0.158, 0.4250

c) 0.088, 0289

d) 0.158, 0.1247

Time 337 5 Suppose you observe the following situation: Pecit co tos a beta oros and expected return 0:22, and thereotco has a reward-to-rekretiloot 0.00 Asume the securities are correctly priced. sored on the CAPM who is the risk tree rota? And what is the expected return on the most . 2015: 04256 30 O c 0.008: 0200 Od 018, 01207 Ne page