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possible? Part TWO Portfolio Theory If the simple CAPM is valid, which of the situations in Problems 13-19 below are Explain. Consider each situation independently,

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possible? Part TWO Portfolio Theory If the simple CAPM is valid, which of the situations in Problems 13-19 below are Explain. Consider each situation independently, Beta Expected Return Portfolio 13. 1.4 20% 25 1.2 ( LO 71 Standard Deviation 14. Portfolio Expected Return 30% 35% A 40 25 B (LO 7-11 Beta 18 . Portfolio Expected Return 10% 0 Risk-free 18 1.0 Market 16 0.9 (LO 7-1

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