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Consider the following information: Expected Standard Portfolio Return Deviation. Risk-free 5% 0% Market A 12.4 10.4 32 21 Required: a. Calculate the Sharpe ratios

Consider the following information: Expected Standard Portfolio Return Deviation. Risk-free 5% 0% Market A 12.4 10.4 32 21 Required: a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Market portfolio Portfolio A Sharpe Ratio b. If the simple CAPM is valid, is the above situation possible? Yes O No

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