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Suppose you observe the following situation: Security Beta | Expected Return Panther Inc: 1 . 1 5 | 1 2 . 9 0 % Tiger

Suppose you observe the following situation:

Security Beta

|

Expected Return

Panther Inc:

1.15 | 12.90 %

Tiger Corporation:

0.84 | 10.20 %

Assume the two securities are correctly priced. Based on CAPM, what is the expected return on the market? What is the risk

-

free rate?

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