00 eBook Problem Walkthrough Consider the following information for stocks A, B and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta 9.47% 14% 0.7 11.45 14 11 13.92 14 1.6 Fund P has one-third of its funds nested in each of the three stocks. The ne free rates, and the market in equilibrium. (That is required returns equal expected returns.) a. What is the market visk premium (W)? Round your answer to two decimal places A b. What is the beta of Fund Dy Do not round intermediate calculations. Round your answer to the decimal places c. What is the required retum of Fund P? Do not round intermediate calculations. Round your answer to two decimal places d. Would you expect the standard deviation of Fund to be one than 14%, equal to 10% or greater than 1447 1. Less than 14% 11. Greater than 14% II. Equal to 14% -Select