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Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 13.2 1.0 A 11.2 2.1 a. Calculate the the return predicted by

Consider the following information: Portfolio Expected Return Beta Risk-free 6 % 0 Market 13.2 1.0 A 11.2 2.1 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 2.1. (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?

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