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17.(10 points) Assume the CAPM holds and the return on the market portfolio is 10%, its standard deviation is 10% and the risk free rate

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17.(10 points) Assume the CAPM holds and the return on the market portfolio is 10%, its standard deviation is 10% and the risk free rate is 5%. Can each of the following assets exist in equilibrium? Explain in one or two sentences. a) A bond with expected return 0% and standard deviation 1% b) A put option with expected return 50% and standard deviation 100% c) A stock with expected return 10% and the standard deviation 9% d) A call option with Sharpe ratio expected return 15% and standard deviation 20%

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