problem: If the CAPM is valid, which of the following conditions is possible? Describe.
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
