Suppose the CAPM is correct. Which of the following situations (A-D) are possible? Explain. Consider each situation independently. Table 2: Question 8 (A) Portfolio Expected Return (%) Beta A 20 1.4 B 25 1.2 3 Table 3: Question 8 (B) Portfolio Expected Return (%) Standard Deviation (%) A 30 35 B 40 25 Table 4: Question 8 (C) Portfolio Expected Return (%) Standard Deviation (%) Risk-free 10 0 Market 18 24 A 16 12