Consider the following information:

Required:

a$.$ Calculate the return predicted by CAPM for a portfolio with a beta of $1\mathrm{.}6.($Round your answer to $2$ decimal places.$)$

Return

$\%$

b$.$ What is the alpha of portfolio $A.($Negative value should be indicated by a minus sign. Round your answer to $2$ decimal places.$)$

Alpha

$\%$

c$.$ If the simple CAPM is valid, is the situation above possible?

Yes

No