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18. If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and

18. If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. (b) (a) Portfolio Expected Return A Market Portfolio A Market LO 10% 10% Expected Return Standard Deviation 13% 8% 5 Beta 1.4 1.0 14% 22%
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18. If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. (a) Option a (b) Option b (c) Option c (d) Option d

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