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Consider the following information: Portfolio Expected Return Standard Deviation Risk - free 7 % 0 % Market 1 1 . 0 2 5 A 1
Consider the following information:
Portfolio Expected Return Standard Deviation
Riskfree
Market
A
Required:
a Calculate the Sharpe ratios for the market portfolio and portfolio ARound your answers to decimal places.
b If the simple CAPM is valid, is the above situation possible?
multiple choice
Yes
No
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