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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

  • Possible

  • Not possible

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