Question: (POINTS: 30) For this question, assume the CAPM world. 3.I) Is the following scenario possible? Explain why or why not. (Points: 15) 3.II) what kind

 (POINTS: 30) For this question, assume the "CAPM" world. 3.I) Is

(POINTS: 30) For this question, assume the "CAPM" world. 3.I) Is the following scenario possible? Explain why or why not. (Points: 15) 3.II) what kind of asset has a =0 ? Explain. (Hint: Compute the expected return and variance of such an asset.) (Points: 15)

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