Business, 29.06.2021 19:00, Parmenter

Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 10.6 1.0 A 8.6 0.9 a. Calculate the expected return of portfolio A with a beta of 0.9. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) c. If the simple CAPM is valid, is the above situation possible?

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Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 10.6 1.0 A...