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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1 . 0 0 0 . 1 1 0 Repete Co . 0
Suppose you observe the following situation:
Security Beta Expected Return
Pete Corp.
Repete Co
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market for both Pete Corp. & Repete Co What is the riskfree rate?
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