Capm validity as well as possible situations

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Reference no: EM1316546

CAPM validity as well as possible situations

If the CAPM is valid, which of the following situations is possible? Explain.

Portfolio

Expected Return

Beta

A

.20

1.4

B

.25

1.2

 

Portfolio

Expected Return

Beta

A

.30

0.35

B

.40

0.25

 

Portfolio

Expected Return

Beta

Risk Free

.10

0

Market

.18

.24

A

.16

.12

 

Portfolio

Expected Return

Beta

Risk Free

.10

0

Market

.18

.24

A

.20

.22

Reference no: EM1316546

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