Question: roblem 1 3 - 2 7 SML ( LO 4 ) Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1 .
roblem SML LO Suppose you observe the following situation: Security Beta Expected Return Pete Corp. Repete Co 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 decimal places. Expected Return on Market Pete Corp. Repete Co What is the riskfree rate? Do not round intermediate calculations. Round the final answer to decimal places. Riskfree rate
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