Suppose you observe the following situation: Security Beta Pete Corp. Repete Co. 1.15 0.84 Expected Return...
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Suppose you observe the following situation: Security Beta Pete Corp. Repete Co. 1.15 0.84 Expected Return 0.125 0.098 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Pete Corp. Repete Co. Expected Return on Market % % What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate % Suppose you observe the following situation: Security Beta Pete Corp. Repete Co. 1.15 0.84 Expected Return 0.125 0.098 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Pete Corp. Repete Co. Expected Return on Market % % What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Risk-free rate %
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