Question: Suppose you observe the following situation: table [ [ Security , Beta,Expected Return ] , [ Pete Corp., 1 . 5 0 , 0
Suppose you observe the following situation:
tableSecurityBeta,Expected ReturnPete Corp.,Repete Co
What is the riskfree rate? Do not round intermediate calculations. Round the final answer to decimal places.
Riskfree 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 decimal places.
tableExpected Return on MarketPete Corp.,
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