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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1 . 7 5 0 . 1 8 5 Repete Co . 1
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? Do not round intermediate calculations. Round the final answers to decimal places.
Expected Return on Market
Pete Corp.
Repete Co
What is the riskfree rate? Do not round intermediate calculations. Round the final answer to decimal places.
Riskfree rate
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