Question: If the simple CAPM is valid, is the following situation possible? Explain 17. begin{tabular}{lcc} hline Portfollo & Expected Return & Beta hline Risk-free &

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

17. \begin{tabular}{lcc} \hline Portfollo & Expected Return & Beta \\ \hline Risk-free & 10% & 0% \\ Market & 18 & 1.0 \\ A & 16 & 1.5 \\ \hline \end{tabular} () LO 7-1)

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