Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.95 1.64 Expected Return 0.205 0.178 What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate 3.52 % 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