Consider the following information: Expected Standard Portfolio Risk-free Market Return Deviation 6.0% 0% 10.2 8.2 21 10 a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) Sharpe Ratio Market portfolio Portfolio A b. If the simple CAPM is valid, is the above situation possible? O Yes Rlsb Consider the following information Expected Return Portfolio Risk-free Market Beta 0 5% 11.8 9.8 2.2 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 2.2. (Round your answer to 2 decimal places.) 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 c. If the simple CAPM is valid, is the situation above possible? Yes 0 References eBook & Resources