Suppose you observe the following situation:

Security

Beta

Expected Return

Pete Corp.

1.65

.175

Repete Co.

1.34

.148

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return on market

11.84 %

What is the risk-free rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate

3.13 %

This is what I did. Please tell me if I did it correct. Thanks. (.175-RF)/1.5=(.148-RF)/1.34 RF=0.03129=3.13 .175=0.0313+1.65(R1-.0313) =11.84