Consider the following information:

Portfolio	Expected Return	Beta
Risk-free	5	%	0
Market	11.8		1.0
A	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 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 situation above possible?

Yes

No