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If the simple CAPM is valid, is the situation shown below possible? Portfolio Expected Return Beta Risk-free 6 % 0 Market 17 % 1.0 A
If the simple CAPM is valid, is the situation shown below possible?
Portfolio | Expected Return | Beta | ||
Risk-free | 6 | % | 0 | |
Market | 17 | % | 1.0 | |
A | 12 | % | 1.5 | |
multiple choice
Possible
Not possible
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