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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.15 0.129 Repete Co. 0.84 0.102 Assume these securities are correctly priced. Based
Suppose you observe the following situation:
Security Beta Expected Return
Pete Corp. 1.15 0.129
Repete Co. 0.84 0.102
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 answer to 2 decimal places. (e.g., 32.16))
Expected return on market
Pete Corp.%
Repete Co.%
What is the risk-free rate?(Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))
Risk-free rate%
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