Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Beta Risk-free 5 % 0 Market 20 % 1.0 A

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

Portfolio Expected Return Beta

Risk-free 5 % 0

Market 20 % 1.0

A 16 % .8

multiple choice

Possible

Not possible

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