Consider the following information:

Portfolio Expected Return Beta

Risk-free 11% 0

Market 13.6 1.0

A 11.6 0.8

a.Calculate the expected return of portfolioAwith a beta of 0.8.(Round your answer to 2 decimal places.)

Expected return%

b.What isthe alpha of portfolioA.(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 above situation possible?

Yes

No