Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 17 %
If the simple CAPM is valid, is the situation shown below possible?
| Portfolio | Expected Return | Standard Deviation | ||
| Risk-free | 10 | % | 0 | % |
| Market | 17 | % | 25 | % |
| A | 15 | % | 13 | % |
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