Question: If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and

If the simple CAPM is valid and all portfolios are priced correctly,

If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5% A) Expected Portfolio Return Beta A 20% 0.7 Market 20% 1.0 B) Expected Standard Portfolio Return Deviation A 234 7% Market 188 158 C) Expected Portfolio Return Beta A 231 0.7 Market INN 1.0 D) Expected. Portfolio Return Deta 33.51 1.9 A Market 20% 1.0

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