Question: Suppose you observe the following situation: Security Beta Expected Return Mxy Co. 1.20 18% Ore-On Co. 0.85 14% Assume that these securities are correctly priced

Suppose you observe the following situation: Security Beta Expected Return Mxy

Suppose you observe the following situation: Security Beta Expected Return Mxy Co. 1.20 18% Ore-On Co. 0.85 14% Assume that these securities are correctly priced according to the CAPM. What are the risk-free rate and the expected return on the market (in percent terms to 2 decimal points - eg 1.23%)

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