Question: A) Expected Return Portfolio A 16% Market 16% Expected Return Portfolio A 19% Market 14% Expected Return Portfolio A 19% Market 14% 1.0 Expected Return

A) Expected Return Portfolio A 16% Market 16% Expected Return Portfolio

A) Expected Return Portfolio A 16% Market 16% Expected Return Portfolio A 19% Market 14% Expected Return Portfolio A 19% Market 14% 1.0 Expected Return Portfolio Beta 1.5 A 21.5% Market 16% 1.0 rev: 12_09_2020_QC_CS-243500 If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. O a. Option D O b. Option A O c. Option B O d. Option C B) C) D) Beta 1.1 1.0 Standard Deviation 11% 19% Beta

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