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Posted on Sep 05, 2024

Suppose you observe the following situation: Security Beta Expected Return pete corp 1.25 0.1323 Repete Co 0.87 0.0967 a. Assume these securities are correctly priced.

Suppose you observe the following situation:

Security Beta Expected Return

pete corp 1.25 0.1323

Repete Co 0.87 0.0967

a.
Assume these securities are correctly priced. Based on the CAPM, what are the expected returns on the market using pete corp and Repete Co? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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