Question: If the simple CAPM is valid, are the situations shown below possible? Situation 1: Expected Portfolio Beta Return A 12% 0.9 B 15% 1.2 Situation

If the simple CAPM is valid, are the situations shown below possible? Situation 1: Expected Portfolio Beta Return A 12% 0.9 B 15% 1.2 Situation 2: Portfolio Expected Standard Return Deviation A 18% 30% B. 20% 22%

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