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Consider the following information for stocks A and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. That

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Consider the following information for stocks A and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. That is, each of the correlation coeficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta 8.554 15% 0.9 9.90 15 1.2 11.25 15 1,5 Fund P has one third of its fundo invested in each of the three stocks. The risk free rate is 4.94, and the market is in equilibrium. (That is required returns equal expected return.) a. What is the market premium - Round your answer to one decimal face . What is the beta of Fond Do not round intermediate calculations, Round your answer to two decent places c. What is the required return of Fund P7 Do not round intermediate calculations, Round your answer to two decimal places d. What would you expect the standard deviation of Fund P to be? I Less than 15% II Greater than 15% III. Equal to 15%

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