uppose you observe the following situation:

Security Beta Expected Return

Pete Corporation $1\mathrm{.}05\mathrm{.}115$

Repete Company $\mathrm{.}75\mathrm{.}088$

a$.$

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the risk$-$free rate? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$uppose you observe the following situation:

Security Beta Expected Return

Pete Corporation $1\mathrm{.}05\mathrm{.}115$

Repete Company $\mathrm{.}75\mathrm{.}088$

a$.$

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the risk$-$free rate? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$