Expert Solutions

Is this situation possible in equilibrium (does CAPM hold in this case)?
Assume that the standard deviation of the return on the market portfolio is 0.2.

Asset____|___BETA___|______E[R]____|____standared dev___|
1_______|____.5____|______0.10____|_____.30____________|
2_______|____1.5___|______0.20____|_____0.15___________|