d Problem 7-18 (Algo) Consider the following information: Expected Return Portfolio Beta 8% 0 Risk-free Market 10.2 1.0 A 8.2 0.7 Required: a. Calculate the expected return of portfolio A with a beta of 0.7. (Round your answer to 2 decimal places.) Expected return 9.54% 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 1.34 % c. If the simple CAPM is valid, is the above situation possible? Yes * O No