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Consider the following information: Portfolio Expected Return Beta Risk-free 11% 0 Market 12.2 1.0 A 11.0 0.9 A. Calculate the expected return of portfolio A with a beta of 0.9. B. What is the alpha of
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Consider the following information:

Portfolio Expected Return Beta
Risk-free 11% 0
Market 12.2 1.0
A 11.0 0.9
A. Calculate the expected return of portfolio A with a beta of 0.9.
B. What is the alpha of portfolio A.
C. If the simple CAPM is valid, is the above situation possible?

User Leoce
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3 votes
The answer would be letter c
User Robbendebiene
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