Question: If the simple CAPM is valid, is the situation shown below possible? Portfolio Risk-free Market A Expected Return 7% 17% 13% Beta 0 1.0 1.4

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 A Expected Return 7% 17% 13% Beta 0 1.0 1.4 Possible O Not possible

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