Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1 . 0 0 0

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Question:

Suppose you observe the following situation:

Security Beta Expected Return

Pete Corp.

1.00 0.110

Repete Co

. 0.69 0.083

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market for both Pete Corp. & Repete Co

. ?

What is the risk

-

free rate?

Posted Date: May 18, 2024 07:09 PM

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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1 . 0 0 0

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