(9) Messi, Inc. has a beta of 0.6. Its stock price increased by 14% in 2020. Ronaldo, Inc. has a beta of 1.2 and its stock price increased by 9% in 2020. If the market risk premium is expected to increase by 5 percentage in 2021, which stock will you expect to have a higher return in 2021 per CAPM? A. Ronaldo, Inc. B. Messi, Inc. C. They should have the same expected return. D. Not enough information to determine this. (10) Assume that the simple CAPM is valid, and decide whether the following situation is possible or not. Justify your choice. Portfolio Risk-Free Market A . Expected Return 10% 18% 16% Standard Deviation 0 24% 12%