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iF THE SIMPLE Capm is valid and all portfolios are prices correctly, which of the...

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Accounting

iF THE SIMPLE Capm is valid and all portfolios are prices correctly, which of the situations below is possible? Consider each situation independently and assume the risk free rate is 2.5%

A.

Portfolio A : 17.5% - EXPECTED RETURN 1.5-Beta

Market: 12.5%- EXPECTED RETURN 1.0 Beta

B.

Portfolio A : 8.5% - EXPECTED RETURN 18.0% std deviation

Market: 10.0%- EXPECTED RETURN 24.0% std deviation

C

Portfolio A : 13.5% - EXPECTED RETURN 1.2-Beta

Market: 10.0%- EXPECTED RETURN 1.0 Beta

D.

Portfolio A : 7.5% - EXPECTED RETURN 0.6-Beta

Market: 10.0%- EXPECTED RETURN 1.0 Beta

A.option A

B. option B

c.option c

d. option d

Please answer quick

thanks

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