Question: Suppose you observe the following situation: Security Beta Expected Return Peat Co . 1 . 2 0 1 4 . 6 Re - Peat Co
Suppose you observe the following situation:
Security Beta Expected Return
Peat Co
RePeat Co
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the riskfree rate? Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
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