Consider the following information:

Portfolio	Expected Return		Standard Deviation
Risk-free	12	%	0
Market	12.8		1.0
A	11.5		0.8

a. Calculate the expected return of portfolio A with a beta of 0.8. (Round your answer to 2 decimal places.)

Expected 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 above situation possible?

	Yes
/	No