Consider the following information for three stocks, 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 comments is between 0 and 1.) Stock Expected Return Beta 0.8 Standard Deviation 16 16 16 B 10.78 13.15 1.1 1.6 Fund P has one-third of its funds invested in each of the three stock. The risk-free rate is 5.5%, and the market is in equilibrium. (That is required returns equal expected returns.) The data has been collected in the Microsoft Excel Online file below. Open the soreadsheet and perform the required analysis to answer the questions below X Open spreadsheet a. What is the market risk premium (ap)? Round your answer to two decimal places b. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places c. What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places d. Would you expect the standard deviation of Fund P to be less than 16%, equal to 16%, or greater than 1647 1. less than 16% II greater than 16% III. equal to 16% Nad CAPM. portobork, and utumn Risk Free RF 8.50 For Formu Formula Expected Retur 7 Standard Deviation Bet Stock A 9. 18.00 0.30 SOB 10 GOON 1.10 Stock 131 16.00 150 NA 10 Mark Premium RP 11 12 Stockin Fund 0333333 0.3333 14 Data of Pund 15 16 Required folum of Fund P 17 18 Expected Relum of Fund P 10 20