Question: MOD #6 Homework 0 Saved Help Save & Exit Submit 5 Check my work 21 Suppose you observe the following situation: Expected Return 10.8 9.4

 MOD #6 Homework 0 Saved Help Save & Exit Submit 5

MOD #6 Homework 0 Saved Help Save & Exit Submit 5 Check my work 21 Suppose you observe the following situation: Expected Return 10.8 9.4 Security Peat Co. Re-Peat Co. Beta 1.10 0.85 2 points Skipped 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.) eBook Print Expected return on market Risk-free rate Mc Graw Hill Next > 21 of 22

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