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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.80 3.69 Expected Return 0.110 8.983 What is the risk-free rate? (Do not

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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.80 3.69 Expected Return 0.110 8.983 What is the risk-free rate? (Do not round Intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate 1% 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 % Pete Corp. Repete Co

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