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Consider the following information: Portfolio Risk-free Market Expected Return 5% 10.0 8.0 Standard Deviation 0% 20 11 Required: a. Calculate the Sharpe ratios for the

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Consider the following information: Portfolio Risk-free Market Expected Return 5% 10.0 8.0 Standard Deviation 0% 20 11 Required: 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? O Yes O No

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