Suppose You Observe the Following Situation Assume These Securities Are Correctly Priced

Multiple Choice

Suppose you observe the following situation: $\begin{array}{ccc}&& \text { Expected } \\\text { Security } & \text { Beta } & \text { Retumn } \\\mathrm{A} & 1.16 & .1137 \\\mathrm{~B} & .92 & .0984\end{array}$
Assume these securities are correctly priced. Based on the CAPM, what is the return on the market?

A) 9.99 percent
B) 11.42 percent
C) 10.35 percent
D) 9.78 percent
E) 11.01 percent