Question: Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7.0 % 0 % Market 10.4 22 A 9.0 10 a. Calculate the Sharpe ratios

Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7.0 % 0 % Market 10.4 22 A 9.0 10 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Sharpe Ratio Market portfolio Portfolio A b. If the simple CAPM is valid, is the above situation possible? Yes No

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