If the CAPM is valid, which of the following situations is possible: 1) Portfolio Expected return Standard deviation A 30 35 B 40 25 Expected return 10 2) Portfolio Risk-free Market A Standard deviation 0 24 12 18 16 3) Portfolio Risk-free Market A Expected return 10 18 Beta 0 1.0 20 1.5 4) Portfolio Risk-free Market A Expected return 10 18 16 Standard deviation 0 24 22 A) 1 and 3 only B) 1 and 4 only C) 2, 3, and 4 only D) 1, 3, and 4 only E) 1, 2, 3, and 4