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3. Assume we are in a CAPM world. Tell me if each of the following scenarios is possible and why? a) Security E(r) A 30

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3. Assume we are in a CAPM world. Tell me if each of the following scenarios is possible and why? a) Security E(r) A 30 15 25 20 b) Security Beta E(r) A 1.5 25 B .5 5 Mrkt 1 15 o E(r) 0 10 10 15 c) Security If Market20 30 d) Security Beta EO A 2 15 B 1.5 20

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