Question: If the simple CAPM is valid, say whether the situation is possible or not? Portfolio Expected Return Beta Risk-free 10 0 Market 20 1.3 A
If the simple CAPM is valid, say whether the situation is possible or not?
| Portfolio | Expected Return | Beta |
| Risk-free | 10 | 0 |
| Market | 20 | 1.3 |
| A | 17 | 1.6 |
a. Possible
b. Not possible
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