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Suppose you observe the following situation: pete corp: beta= 1.3 , expected return= 0.20 repete corp: beta= 0.8, expected return= 0.14 assume these securities are

Suppose you observe the following situation:

pete corp: beta= 1.3 , expected return= 0.20

repete corp: beta= 0.8, expected return= 0.14

assume these securities are correctly priced. Based on CAPM, what is the expected return of the market?, what is the risk free rate?

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