Question: Suppose you observe the following situation: Security Beta Expected Return Peat Co . 1 . 3 0 1 0 . 6 Re - Peat Co

Suppose you observe the following situation:
Security Beta Expected Return
Peat Co.1.3010.6
Re-Peat Co..809.3
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Expected return
%
Risk-free rate
%

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