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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

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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 coelficients 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 6.5. a. What is the market risk premium (ffu) ? Round your answer to one decimal place, ald b. What is the beta of Fund P? Do not round intermediate calculations. Found your answer to two decimal places. c. What is the recuired return of Fund pr 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? 1. Less than 15% If. Greater than 15\% 11. Equal to 15%

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