Question: Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 18 24 A 16 12 a. Calculate the sharpe ratios

Consider the following information:

Portfolio Expected Return Standard Deviation
Risk-free 10 % 0 %
Market 18 24
A 16 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, state whether the above situation is possible?
Yes
No

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