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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.10 0.79 Expected Return 0.120 0.993 What is the risk-free rate? (Do not

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Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.10 0.79 Expected Return 0.120 0.993 What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate 0 % 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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