23 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) Expected Return 16% 16% Portfolio Market 8 01:47:08 Beta 1.0 1.0 B) Portfolio A Market Expected Standard Return Deviation 19% 10% 14% 18% C) Portfolio A Market Expected Return 19% 14% Beta 1.0 1.0 D) Portfolio Market Expected Return 32.5% 16% Beta 2.5 1.0