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Suppose you observe the following situation: Security Beta Expected Return Peat Company 1 . 7 0 1 3 . 6 0 Re - Peat Company

Suppose you observe the following situation:
Security Beta Expected Return
Peat Company 1.7013.60
Re-Peat Company 0.8510.80
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?

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