Question: If the CAPM is valid, is the situation below possible? Portfolio Expected Ret A 20% B 25% Beta 1.4 1.2 O Not possible. Portfolio A

If the CAPM is valid, is the situation below possible? Portfolio Expected Ret A 20% B 25% Beta 1.4 1.2 O Not possible. Portfolio A has a higher beta than portfolio B, but the expected return for portfolio A is lower. Possible. Portfolio A has a lower beta than portfolio B Possible. Portfolio A has a lower beta than portfolio 8, but the expected return for portfolio A is higher. O Not possible Portfolio B hos lower sharpe ratio

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