Question: Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7% 0% Market 13.4 37 A 12.0 26 Required: a. Calculate the Sharpe ratios for

Consider the following information:

Portfolio Expected Return Standard Deviation
Risk-free 7% 0%
Market 13.4 37
A 12.0 26

Required:

a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.)

b. If the simple CAPM is valid, is the above situation possible? multiple choice

Yes

No

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