Suppose you observe the following situation:

Security	Beta			Expected Return
Pete Corp.		1.55			.165
Repete Co.		1.24			.138

What is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Risk-free rate

%

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

Expected return on market ? %