Suppose you observe the following situation:

Security	Beta			Expected Return
Pete Corp.		1.05			0.115
Repete Co.		0.75			0.088

1. 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 final answer to 2 decimal places. (e.g., 32.16))

2. What is the risk-free rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))