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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.90 1.59 Expected Return 0.200 0.173 Assume these securities are correctly priced.

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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.90 1.59 Expected Return 0.200 0.173 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.) Pete Corp. Repete Co. Expected Return on Market What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate %

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