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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected return 13.50% 10.80 Assume these securities are correctly priced. Based

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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected return 13.50% 10.80 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return on market O % What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Risk-free rate 0 %

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