Question: Supppose you observe the following situation: Security Beta Expected Return Pete Corp. 0.8 0.12 Repete Corp. 1.1 0.16 Assume these securities are correctly priced. Based

Supppose you observe the following situation:

Security Beta Expected Return
Pete Corp. 0.8 0.12
Repete Corp. 1.1 0.16

Assume these securities are correctly priced. Based on CAPM, what is the return on the market?

14.42 percent
15.01 percent
14.67 percent
13.99 percent

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