Question: CAPM Exercise If the simple CAPM is valid, which of the following situations are possible? Portfolio Beta A B Expected Return 20% 25% 1.4 1.2

CAPM Exercise If the simple CAPM is valid, which of the

CAPM Exercise If the simple CAPM is valid, which of the following situations are possible? Portfolio Beta A B Expected Return 20% 25% 1.4 1.2 Portfolio Expected Return 30% A Standard Dev. 0.35 0.25 B 40%

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