Question: Consider the following information: Required: a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.)

Consider the following information: Required: a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer c. If the simple CAPM is valid, is the above situation possible? Yes No

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