If the simple CAPM is valid, which of the situations in Problems 13-19 below are possible? Explain. Consider each situation independently. 13 Expected (LO7 Portfolio Return Beta 2) A 20% B 25 1.2 14 Portfolio A B Expected Return 30% 40 Standard Deviation 35% 25 (207 1) page 219 15 (LO7 1) Expected Standard Portfolio Return Deviation Risk- 10% 0% free 24 Market A 18 16 12 16. (LO7 1) Portfolio Risk free Expected Standard Return Deviation 10% 0% . 24 Market 18 20 22 17 (LO 7. 1) Expected Return 10% Portfolio Risk free Beta 0 18 1.0 Market 16 1.5 18 (LO7 1) A 16 12 16. (LO 7. 1) Standard Deviation 0% Expected Portfolio Return Risk- 10% free Market 18 A 20 24 22 17. (LO 7. 1) Beta o Expected Portfolio Return Risk 10% free Market 18 A 16 1.0 1.5 18. . (LO 7. 1) Beta 0 Expected Portfolio Return Risk- 10% free Market 18 16 1.0 0.9 19. Expected Return 10% Standard Deviation (LO 7. 1) 0% Portfolio Risk- free Market A 24 18 16 22 1. Go to Connect and link to Chapter 7 materials, where you will find a spreadsheet with monthly returns for GM, Ford, Toyota, the S&P 500, and Treasury bills. (LO 7-1) a. Estimate the index model for each firm over the full five-year period. Compare the betas of each firm. b. Now estimate the betas for each firm using only the first two years of the sample and then using only the last two years. How stable are the beta estimates obtained from these shorter subperiods