Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.45 .155 Repete Co. 1.14 .128 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.)
1. Expected return on market?