Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Standard Deviation Risk-free 5 % 0 % Market 18 %
If the simple CAPM is valid, is the situation shown below possible?
| Portfolio | Expected Return | Standard Deviation | ||
| Risk-free | 5 | % | 0 | % |
| Market | 18 | % | 34 | % |
| A | 16 | % | 32 | % |
multiple choice
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Possible
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Not possible
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