Question: QUESTION 17 Portfolio A has expected return and risk (standard deviation of return) of 10% and 18%. Portfolio B has expected return and risk (standard

QUESTION 17

  1. Portfolio A has expected return and risk (standard deviation of return) of 10% and 18%. Portfolio B has expected return and risk (standard deviation of return) of 13% and 17%.

    Is the above possible if CAPM is valid?

    A.

    Possible
    B.

    Not possible

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