Consider the following information: Portfolio Expected Return Standard Deviation Risk-free 7% 0% Market 11.6 28 A 10.0 17 Required: a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.) b. If the simple CAPM is valid, is the above situation possible?
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Consider the following information:
| Portfolio | Expected Return | Standard Deviation |
|---|---|---|
| Risk-free | 7% | 0% |
| Market | 11.6 | 28 |
| A | 10.0 | 17 |
Required:
a. Calculate the Sharpe ratios for the market portfolio and portfolio A. (Round your answers to 2 decimal places.)
b. If the simple
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