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If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. A) Portfolio Expected Return Beta A 11% 1.3 Market 11% 1.0 B) Portfolio Expected Return Standard Deviation A 14% 13% Market 9% 21% C) Portfolio Expected Return Beta A 14% 1.3 Market 9% 1.0 D) Portfolio Expected Return Beta A 17.6% 2.1 Market 11% 1.0 Multiple Choice Option A Option B Option C Option D

If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. A) Portfolio Expected Return Beta A 11% 1.3 Market 11% 1.0 B) Portfolio Expected Return Standard Deviation A 14% 13% Market 9% 21% C) Portfolio Expected Return Beta A 14% 1.3 Market 9% 1.0 D) Portfolio Expected Return Beta A 17.6% 2.1 Market 11% 1.0 Multiple Choice Option A Option B Option C Option D

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. A) Portfolio Expected Return Beta A 11% 1.3 Market 11% 1.0 B) Portfolio Expected Return Standard Deviation A 14% 13% Market 9% 21% C) Portfolio Expected Return Beta A 14% 1.3 Market 9% 1.0 D) Portfolio Expected Return Beta A 17.6% 2.1 Market 11% 1.0 Multiple Choice Option A Option B Option C Option D
Transcribed Image Text:If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%. A) Portfolio Expected Return Beta A 11% 1.3 Market 11% 1.0 B) Portfolio Expected Return Standard Deviation A 14% 13% Market 9% 21% C) Portfolio Expected Return Beta A 14% 1.3 Market 9% 1.0 D) Portfolio Expected Return Beta A 17.6% 2.1 Market 11% 1.0 Multiple Choice Option A Option B Option C Option D
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