[ytk1755]

If the simple CAPM is valid, which of the situations in problems 4-10 are possible?

Possible
Not Possible


4. Portfolio Expected Return Beta

A 0.20 1.4
B 0.25 1.2




5. Portfolio Expected Return Standard Deviation
A 0.30 .35
B 0.40 .25



6. Portfolio Expected Return Standard Deviation
Risk-Free 0.10 0
Market 0.18 .24
A 0.16 .12



7. Portfolio Expected Return Standard Deviation
Risk-Free 0.10 0
Market 0.18 .24
A 0.20 .22



8. Portfolio Expected Return Beta
Risk-Free 0.10 0
Market 0.18 1.0
A 0.16 1.5



9. Portfolio Expected Return Beta
Risk-Free 0.10 0
Market 0.18 1.0
A 0.16 0.9



10. Portfolio Expected Return Standard Deviation
Risk-Free 0.10 0
Market 0.18 .24
A 0.16 .22

[Curlyben]

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