Question: value: 6.00 points Consider the following information: Standard Deviation Portfolio Risk-free Market Expected Return 10% 12.0 10.0 1.0 0.8 a. Calculate the expected return of

value: 6.00 points Consider the following information: Standard Deviation Portfolio Risk-free

value: 6.00 points Consider the following information: Standard Deviation Portfolio Risk-free Market Expected Return 10% 12.0 10.0 1.0 0.8 a. Calculate the expected return of portfolio A with a beta of 0.8. (Round your answer to 2 decimal places.) Expected 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 above situation possible? O Yes O No

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