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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.15 .84 Expected Return .125 .098 Assume these securities are correctly priced. Based

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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.15 .84 Expected Return .125 .098 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return on market % What is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate %

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