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Supppose you observe the following situation: Security Beta Expected Return Pete Corp. 0.8 0.12 Repete Corp. 1.1 0.16 Assume these securities are correctly priced. Based

Supppose you observe the following situation:

Security	Beta	Expected Return
Pete Corp.	0.8	0.12
Repete Corp.	1.1	0.16

Assume these securities are correctly priced. Based on CAPM, what is the return on the market?

14.42 percent

15.01 percent

14.67 percent

13.99 percent

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