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Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 18 24 A 20 22 a. Calculate the Sharpe ratios

Consider the following information:

Portfolio	Expected Return		Standard Deviation
Risk-free	10	%	0	%
Market	18		24
A	20		22

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

	Sharpe Ratio
Market portfolio
Portfolio A

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

	Yes
	No

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