Question: If the simple CAPM is valid, is the following situation possible? (Hint: Market portfolio has the highest sharpe ratio) Portfolio Expected Return Standard Deviation Risk-free

If the simple CAPM is valid, is the following situation possible? (Hint: Market portfolio has the highest sharpe ratio)

Portfolio

Expected Return

Standard Deviation

Risk-free

10

%

0

%

Market

18

24

A

16

22

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