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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co. 1.25 .85 13.28% 10.12 Assume these securities are correctly priced. Based

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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co. 1.25 .85 13.28% 10.12 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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