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What is the expected return on the market

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Reference no: EM132484788

Suppose you observe the following situation

Security Beta Expected Return

Pete Corp 1.90 .200

Repete Co. 1.59 .173

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

b. What is the risk-free rate?

Reference no: EM132484788

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