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 portfolio A with a beta of 0.8. (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, is the above situation possible?

	Yes
	No