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If the simple CAPM is valid, which of the following situations is possible and why? Consider each situation independently Situation 1: Portfolio Expected Return Beta
If the simple CAPM is valid, which of the following situations is possible and why? Consider each situation independently
Situation 1:
| Portfolio | Expected Return | Beta |
| A | 30% | 1.6 |
| B | 40% | 1.3 |
Situation 2:
| Portfolio | Expected Return | Standard Deviation |
| A | 20% | 30% |
| B | 25% | 15% |
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