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) Portfolio Market Expected Return 18% 18% Beta 0.8 1.0 B) Portfolio A Market Expected Standard Return Deviation 21% 8% 16% 16% C) Portfolio A Market Expected Return 21% 16% Beta 0.8 1.0 D) Portfolio Market Expected Return 24.5% 18% Beta 1.5 1.0 O Option C O Option D OOOO O Option A O Option B