Exercise 1. A. In a CAPM world, is the following scenario possible? Explain why or why not. Portfolio Expected Return Std. Dev Risk-free Market Stock A 12% 18% 22% 0 10% B. In a CAPM world, is the following scenario possible? Explain why or why not. Potfio Expected Return Std. Dev Risk-free Market Stock B Corr(B.M) 0 10.5% 0.5 Exercise 1. A. In a CAPM world, is the following scenario possible? Explain why or why not. Portfolio Expected Return Std. Dev Risk-free Market Stock A 12% 18% 22% 0 10% B. In a CAPM world, is the following scenario possible? Explain why or why not. Potfio Expected Return Std. Dev Risk-free Market Stock B Corr(B.M) 0 10.5% 0.5