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.1.2014.6
Re-Peat Co.0.6010.3
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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