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(4) Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.15 12.90% Repete...

(4) Suppose you observe the following situation:
Security Beta Expected Return
Pete Corp. 1.15 12.90%
Repete Co. 0.84 10.20%
Assume the two securities are correctly priced. Based on CAPM, what is the expected return on the market? What is the risk-free rate? (15 points)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 4 months ago
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