Suppose you observe the following situation:
Security Beta Expected Return
Peat Co. 1.20 11.2
Re-Peat Co. 1.00 9.6
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)