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Consider the following information: Expected Return Portfolio Risk-free Market Beta 11% 12.2 11.0 1.0 0.9 a. Calculate the expected return of portfolio A with a

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Consider the following information: Expected Return Portfolio Risk-free Market Beta 11% 12.2 11.0 1.0 0.9 a. Calculate the expected return of portfolio A with a beta of 0.9. (Round your answer to 2 decimal places.) Expected return b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha 14.2 % c. If the simple CAPM is valid, is the above situation possible? O Yes O No

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