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VII. If the simple CAPM is valid, which of the situation in Tables below are possible? Explain. Consider each situation independently. (6 points) a) Portfolio

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VII. If the simple CAPM is valid, which of the situation in Tables below are possible? Explain. Consider each situation independently. (6 points) a) Portfolio Risk Free Rate Market Expected Return 5% 21% 20% Standard Deviation 0% 22% 10% . Beta b) Portfolio Risk Free Market Expected Return 10% 18% 22% 1.0 A 2

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