Suppose you observe the following situation:

Security

Beta

Expected Return

Pete Corp.

1.65

0.175

Repete Co.

1.34

0.148

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return on market

%

What is the risk-free rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Risk-free rate

%