Consider the following information:

Portfolio	Expected Return		Beta
Risk-free	7	%	0
Market	10.4		1.0
A	9.0		1.5

a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. (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.)

Beta???

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

Yes or No???