CAPM, PORTFOLIO RISK, AND RETURN Consider the following information or stocks A, B, and C The returns on the three stocks are positively correlated, but they are not pe fectly correlated That is, each the correlation coefficients is between O and Stock Expected Return Standard Deviation Beta 8.83% 11.27 12.89 16 1.3 16 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 6% and the market s n equilibrium. hat is required returns equal expected returns. a. What is the market risk premium (M -RF)? 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%? I. Less than 16% I. Greater than 16% 111, Equal to 16%