Question: Suppose you observe the following situation: table [ [ Security , Beta,Expected Return ] , [ Pete Corp., 1 . 5 0 , 0

Suppose you observe the following situation:
\table[[Security,Beta,Expected Return],[Pete Corp.,1.50,0.160],[Repete Co.,1.19,0.133]]
What is the risk-free rate? (Do not round intermediate calculations. Round the final answer to 3 decimal places.)
Risk-free rate
%
Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
\table[[,Expected Return on Market],[Pete Corp.,%
 Suppose you observe the following situation: \table[[Security,Beta,Expected Return],[Pete Corp.,1.50,0.160],[Repete Co.,1.19,0.133]] What

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