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  • Feb 12, 2011, 10:36 PM
    excel3
    CAPM question
    If the simple CAPM is valid, say whether the situation is possible or not?

    (I) risk free rate 10%

    Market return 18%, stdev 24%
    Portfolio A, expected return 20%, stdev 22%

    (ii) Portfolio A, expected return 30%, stdev 35%
    Portfolio B, expected return 40%, stdev 25%

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