Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market Expected Return 5% 18% 15% Beta 0 1.0 9 Possible

 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 Expected Return 5% 18% 15% Beta 0 1.0 9 Possible Not possible

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