Question: If the simple CAPM is valid, is the situation detailed below possible? Explain in a few short sentences Portfolio Expected Return Beta Risk-free 10% 0

  1. If the simple CAPM is valid, is the situation detailed below possible? Explain in a few short sentences

Portfolio

Expected Return

Beta

Risk-free

10%

0

Market

16%

1

A

19%

1.5

B

22%

2

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