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Suppose you observe the following situation: Security Peat Company Re-Peat Company Expected Beta Return 1.20 0.65 11.00 9.90 Assume these securities are correctly priced.

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Suppose you observe the following situation: Security Peat Company Re-Peat Company Expected Beta Return 1.20 0.65 11.00 9.90 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return on market Risk-free rate % %

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