Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market Expected Return 10% 20% 17% Standard Deviation 0% 27% 14%

If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market Expected Return 10% 20% 17% Standard Deviation 0% 27% 14% O Possible O Not possible

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