Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market A Expected Return 7% 16% 14% Standard Deviation 0% 30%

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

If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market A Expected Return 7% 16% 14% Standard Deviation 0% 30% 15% O Possible O Not possible

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