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Hey how do I answer this type of question? The instructions are included in the screenshot i attached. Thank you If the simple CAPM is

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Hey how do I answer this type of question? The instructions are included in the screenshot i attached. Thank you

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If the simple CAPM is valid, which of the situations in Problems 4.1 to 4.7 below are possible? Explain. Consider each situation independently. Problem 4.1 Portfolio Expected return (%) Beta A 20 1.4 B 25 1.2 Problem 4.2 Portfolio Expected return (%) Standard deviation (%) A 30 35 B 40 25 Problem 4.3 m Risk-free 1 0 0 Market 1 8 24 A 16 12

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