Assume these securities are correctly priced. Based on the CAPM, what is the return on the market? Security Beta Expected Return
Pete Corp .0.8 0.12
Repete Corp. 1.1 0.16

Match each event to its effect on the equilibrium interest rate and the amount of investment in the loanable funds market. higher interest rate, greater investment higher interest rate, less investment lower interest rate, less investment lower interest rate, greater investment immediate consumer gratification is no longer preferred by people. an efficient new source of energy effectively increases the return on owning a factory. a wave of retirees stops working and begins drawing on retirement savings.