are not perfectly correlated. That is, each of the correlation coefficients is between 0 and 1.) Stock A Expected Return 9.22% 11.08 12.94 Standard Deviation 16% 16 16 Beta 0.B 12 1.6 B C Fund has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium. (That is, required returns equal expected returns.) The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the market risk premium) Round your answer to two decimal places b. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places c. What is the required return of Fund > Do not found intermediate calculations. Round your answer to two decimal places Nad Open spreadsheet AM a. What is the market risk premium () Round your answer to two decimal places b. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places c. What is the required return of Fund P? Do not round Intermediate calculations. Round your answer to two decimal places. d. Would you expect the standard deviation of Fund P to be less than 16%, equal to 16%, or greater than 16 1. less than 16% 1. greater than 16% II equal to 169 { B D E CAPM, portfolio risk, and return 5 50% Risk Free Rate RF Formula Formula Formula Stock B 11 08% 16.00 120 Stock A 9229 16 00% 0.80 Stock C 12.94% 1600% 1 50 Expected Return Standard Deviation Beta NEA NNIA ENIA 0333333 0333333 0333333 UNIA NA 15 0 Market Risk Premium, RPM 1 2 Stock in Fund P 13 14 Beta of Fund P 16 Required Return of Fund P 17 13 Expected Return of Fund P 19 20 27 WNIA *|