Question: No excel please and please show your work! :) Problem 7-17 Consider the following information: Expected Return Beta Portfolio Risk-free Market a. Calculate the return

No excel please and please show your work! :)

Problem 7-17 Consider the following information: Expected Return Beta Portfolio Risk-free Market a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.6. (Round your answer to 2 decimal places.) Return b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha c. If the simple CAPM is valid, is the situation above possible? Yes No

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