3) If the simple CAPM is valid and all nortfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%.. (Hint: compute expected return for the below four case, using CAPM) A) Portfolio Portfolio Beta Beta Expected Return 15% 15% Expected Return 20% 15% 1.2 A Market Market 10 B) Portfolio D) Portfolio Beta Expected Return 20% 15% Standard Deviation 12% 20% Expected Return 30% 15% 2.5 1.0 Market Market