Question: 1. If the simple CAPM is valid, is the following situation possible? Portfolio Expected return Beta Risk-free 5% 0 Market 12% 1.0 15% 1.5

1. If the simple CAPM is valid, is the following situation

1. If the simple CAPM is valid, is the following situation possible? Portfolio Expected return Beta Risk-free 5% 0 Market 12% 1.0 15% 1.5

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