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If the simple CAPM is valid and all portfolios are priced correctly, which of the...

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Accounting

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) A)

Portfolio Expected Return Beta
A 12% 1.4
Market 12% 1.0

B)

Portfolio Expected Return Standard Deviation
A 15% 14%
Market 10% 22%

C)

Portfolio Expected Return Beta
A 15% 1.4
Market 10% 1.0

D)

Portfolio Expected Return Beta
A 19.0% 2.0
Market 12% 1.0
Portfolio Expected Return Beta
A 12% 1.4
Market 12% 1.0

B)

Portfolio Expected Return Standard Deviation
A 15% 14%
Market 10% 22%

C)

Portfolio Expected Return Beta
A 15% 1.4
Market 10% 1.0

D)

Portfolio Expected Return Beta
A 19.0% 2.0
Market 12% 1.0

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