Question: If the simple CAPM is valid, is the situation shown below possible? Beta Portfolio Risk-free Market Expected Return 6% 18% 14% 1.2 Possible Not possible

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

If the simple CAPM is valid, is the situation shown below possible? Beta Portfolio Risk-free Market Expected Return 6% 18% 14% 1.2 Possible Not possible

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