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Consider the following information: Required: a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. (Round your answer to 2
Consider the following information: Required: a. Calculate the return predicted by CAPM for a portfolio with a beta of 1.5. (Round your answer to 2 decimal places. b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 d c. If the simple CAPM is valid, is the situation above possible? Yes No
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