Question: Exercises #1 (Slide 7) If the simple CAPM is valid, is the following situation possible? Explain Expected Standard Portfolio Return Deviation Risk-Free 10% 0% Market

Exercises #1 (Slide 7)

If the simple CAPM is valid, is the following situation possible? Explain

Expected

Standard

Portfolio

Return

Deviation

Risk-Free

10%

0%

Market

18%

24%

A

20%

22%

Exercise #3 (Slide 18)

Within the context of the CAPM, assume:

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