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B1. Suppose there are 4 well diversified portfolios with the following expected returns and betas on the market. Portfolio A B D 2 .5 1.5

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B1. Suppose there are 4 well diversified portfolios with the following expected returns and betas on the market. Portfolio A B D 2 .5 1.5 1 28% 10% 22% 25% E[r] 10% 4% 8% 9% Is the information in the table above consistent with the Capital Asset Pricing Model? Why or why not? [3 marks] Hint: This answer does not require more than 1 to 2 sentences

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