Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return/Standard Deviation Risk-free 10 % 0 % Market 19 % 26

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

Portfolio

Expected Return/Standard Deviation

Risk-free 10 % 0 %

Market 19 % 26 %

A 17 % 13 %

multiple choice

Possible

Not possible

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