Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Risk-free Market A O Possible O Not possible 78

If the simple CAPM is valid, is the situation shown below possible?

If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Risk-free Market A O Possible O Not possible 78 198 148 Beta 0 1.0 1.1

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