Question: Suppose you observe the following situation: table [ [ Security , Beta,Expected ] , [ Peat Co . , 1 . 2 0 ,

Suppose you observe the following situation:
\table[[Security,Beta,Expected],[Peat Co.,1.20,Return],[Re-Peat Co.,.80,11.0]]
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.)
\table[[,,],[Expected return on market,1.50,%
 Suppose you observe the following situation: \table[[Security,Beta,Expected],[Peat Co.,1.20,Return],[Re-Peat Co.,.80,11.0]] Assume these

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