| Security |
Beta |
Expected Return |
| Pete Corp. |
|
1.50 |
|
|
.160 |
|
| Repete Co. |
|
1.19 |
|
|
.133 |
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market?
(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Expected return on market %
What is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Risk-free rate %