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Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 6 % 0 % Market 10.8 24 A 8.8 13 a. Calculate the Sharpe ratios

Consider the following information:

Portfolio Expected Return Standard Deviation
Risk-free 6 % 0 %
Market 10.8 24
A 8.8 13

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?

  • Yes

  • No

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