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Suppose you observe the following situation: Security Beta Expected Return Pete 1.60 12.9% Repete 0.97 9.5% Assume these securities are correctly priced. Based on the

Suppose you observe the following situation:

Security	Beta	Expected Return
Pete	1.60	12.9%
Repete	0.97	9.5%

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? Shows all the step and formula. Don't round off until you get the answer.

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