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Portfolio ER Beta A 13% 1.3 Market 13% 1.0 B 16% 13% Market 11% 21% Porfolio ER BETA C 16% 1.3 Market 11% 1.0 D
| Portfolio | ER | Beta |
| A | 13% | 1.3 |
| Market | 13% | 1.0 |
| B | 16% | 13% |
| Market | 11% | 21% |
| Porfolio | ER | BETA |
| C | 16% | 1.3 |
| Market | 11% | 1.0 |
| D | 20.2% | 1.9 |
| Market | 13% | 1.0 |
If the simple CAPM is valid and all portfolios are priced correctly, which of the situations above is possible? Consider each situation independently and assume the risk free rate is 5%.
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