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Problem 11-34 SML 39 Suppose you observe the following situation: Security Pete Corp. Repete Co....

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Problem 11-34 SML 39 Suppose you observe the following situation: Security Pete Corp. Repete Co. Beta 1.25 .94 Expected Return .135 .108 ints 01:02:27 Skipped 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., 32.16.) 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., 32.16.) % Expected return on market Risk-free rate %

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