Suppose you observe the following situation: Security Peat Company Re-Peat Company Beta 1.70 0.85 Expected return on market Risk-free rate Expected Return 13.60 10.80 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. % %

Suppose you observe the following situation: 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