Velson Ltd has an expected return of 20% and standard deviation of 35%. BTEC Ltd has an expected return of 25% and standard deviation of 38%. Velson Ltd has a beta of 0.85 and BTEC Ltd has a beta of 1.20. The correlation coefficient between Velson Ltd and BTEC Ltd is +0.70. The standard deviation of the market return is 12%. Using the Capital Asset Pricing Model formula, calculate: (i) the market portfolios expected rate of return and; (ii) the risk-free rate.