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Suppose you observe the following situation: Security Beta Expected Return Pete Corp 1.9 0.200 Repete Co 1.59 .173 Assume these securities are correctly priced. Based

Suppose you observe the following situation:

Security Beta Expected Return
Pete Corp
1.9 0.200
Repete Co 1.59 .173

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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