Consider the following information:

Portfolio	Expected Return		Beta
Risk-free	7	%	0
Market	12.5		1.0
A	9.8		0.7

a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.)

b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)

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

yew or No?