Question: Consider the following information: Expected Return Beta 0.9 points Portfolio Risk-free Market 10.0 8.0 1.0 1.3 eBook a. Calculate the return predicted by CAPM for

Consider the following information: Expected Return Beta 0.9 points Portfolio Risk-free

Consider the following information: Expected Return Beta 0.9 points Portfolio Risk-free Market 10.0 8.0 1.0 1.3 eBook a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.3. (Round your answer to 2 decimal places.) Return O References b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha c. If the simple CAPM is valid, is the situation above possible? Yes

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