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Consider the following for three stocks, Stocks A, B, and C. The returns on the on three stocks are positively corrected, but they are not

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Consider the following for three stocks, Stocks A, B, and C. The returns on the on three stocks are positively corrected, 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 it is equilibrium. (That is, required returns equal expected returns.) a. what is the market risk premium (rM-rRF)? % b. What is the beta of Fund p? Do not round intermediate calculation. c. What is the required return of Found p? Do not round intermediate calculations. % d. Would you expect the standard deviation of Fund p to be less then 16%, greaterthan 16%? I. less then 16% II. greaterthan 16% III. equal to 16%

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