Security Beta Expected Return

Pete Corp.

$1$

$.$

$7$

$0$

$0$

$.$

$1$

$8$

$0$

$$

Repete Co

$.$

$1$

$.$

$3$

$9$

$0$

$.$

$1$

$5$

$3$

$$

$$

What is the risk

$-$

free rate?

$($

Do not round intermediate calculations. Round the final answer to

$3$

$$decimal places.

$)$

$$

Risk

$-$

free rate

$$

$\%$

$$

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.

$)$

$$

$$ Expected Return on Market

Pete Corp.

$$

$\%$

Repete Co

$.$

$$

$$

$\%$