Consider the following information:

Portfolio	Expected Return		Beta
Risk-free	11	%	0
Market	12.2		1
A	11.0		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

%

c.	If the simple CAPM is valid, state whether the above situation is possible?