CAPM, portfolio risk, and return Consider the following information for three stocks, 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.) Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. (That is, required returns equal expected returns.) a. What is the market risk premium (r_M - r_RF)? b. What is the beta of Fund P? Do not round intermediate calculations. c. What is the required return of Fund P? Do not round intermediate calculations. d. Would you expect the standard deviation of Fund P to be less than 16%, equal to 16%, or greater than 16%? I. less than 16% II. greater than 16% III. equal to 16%