Question: Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 0.8 0.12 Repeat Corp. 1.1 0.16 Assume these securuties are correctlly priced. Based

Suppose you observe the following situation:

Security Beta Expected Return

Pete Corp. 0.8 0.12

Repeat Corp. 1.1 0.16

Assume these securuties are correctlly priced. Based on CAPM, what is the return on the market?

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