Question: C) D) B) If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation

C) D) B) 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% A) Portfolio A A A Market Portfolio A Market Portfolio Market Portfolio Market Expected Return 158 15% Expected Return 20% 15% Expected Return 208 158 Expected Return 30% 158 Beta 1.2 1.0 Beta 128 20 Beta 1.2 1.0 Beta 2.5 1.0

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