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Suppose you observe the following situation: table [ [ Security , Beta,Expected Return ] , [ Pete Corporation, 1 . 6 5 , .

Suppose you observe the following situation:
\table[[Security,Beta,Expected Return],[Pete Corporation,1.65,.175],[Repete Company,1.34,.148]]
a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
b. What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
\table[[a. Expected return on market,%
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