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If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Standard Deviation Risk-free 10 % 0 % Market 18 %
If the simple CAPM is valid, is the situation shown below possible?
Portfolio | Expected Return | Standard Deviation | ||
Risk-free | 10 | % | 0 | % |
Market | 18 | % | 24 | % |
A | 20 | % | 22 | % |
multiple choice
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Possible
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Not possible
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