Consider the following information:

Portfolio Expected Return Standard Deviation

Risk$-$free $5\%0\%$

Market $10\mathrm{.}020$

A $8\mathrm{.}011$

Required:

a$.$ Calculate the Sharpe ratios for the market portfolio and portfolio A$.($Round your answers to $2$ decimal places.$)$

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

multiple choice

Yes

No