Question: Beta QUESTION 18 If the simple CAPM (single-factor) is valid, which of the situation is possible? Portfolio Expected Return Risk-free 10% 0.0 O Market 18%

Beta QUESTION 18 If the simple CAPM (single-factor) is valid, which of the situation is possible? Portfolio Expected Return Risk-free 10% 0.0 O Market 18% 1.0 16% 1.5 Portfolio Expected Return Beta 20% 1.4 B 25% 1.3 Portfolio STD Expected Return 30% 35 O A B 40% 25 Portfolio Expected Return STD Risk-free 10% 0% O Market 189 2496 16% 1296

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