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Consider the following information for stocks AB , and The returns on the three stocks are positively correlated, but they are not perfectly That each
Consider the following information for stocks AB and The returns on the three stocks are positively correlated, but they are not perfectly That each of the correlation coefficients is between and Stock Expected Return Standard Deviation Beta Fund P has onethird of its funds invested in each of the three stocksThe riskfree rate is and the market is in That required equal expected a What is the market risk premium Round your answer to one decimal place b What is the beta of Fund PDo not round intermediate Round your answer to two decimal places What is the required return of Fund 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 than Greater than Equal to Select
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