CAPW, PORTFOLIO RISK, AND RETURN Cinsider the informack And Therman the three weively correlated at they are not chat the correct Standard deviation EN 164 0.9 Stock Expected Naturn Beta . 10.45 16 156 11.12 ne third of the mosted in chathe three. There and the martum (Thermalm with the mornwermediate calculation, Hout your web doma aces Watum effund Detroud med at der er medecimal y the standard deviation of the there that Less than . 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 Standard Deviation Stock Expected Return Beta 8.785 15% 0.9 B 16 1.6 10.45 1.3 C 11.72 16 Fund has one-third of its funds invested in each of the three stocka. The risk-free rate is 5%, and the market is in equilibrium. (That is required returns equal expected returna.) how. What is the market riek premium (- ? Round your answer to two decimal place b. What is the bata af Fund P7 do nat round intermediate calculation. Round your answer to two decimal places c. What the required return of Fund ? Do not round intermediate creation Round your answer to two decimal places 6. Would you expect the standard deviation of Fund to be less than 16 equal to 10 or greater than 1647 1. LASE than 16 Greater than 164 Select sitively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) and the market is in equilibrium. (That is, required returns equal expected returns.) er to two decimal places. our answer to two decimal places. - or greater than 167