Question: Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 5.0 % 0 % Market 10.6 23 A 8.6 12 a. Calculate the Sharpe ratios

Consider the following information:

Portfolio Expected Return Standard Deviation
Risk-free 5.0 % 0 %
Market 10.6 23
A 8.6 12

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?

y/n

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