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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. 1.000.110
Repete Co.0.690.083
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 risk-free rate?

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