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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

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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 coefficients is between 0 and 1.) Fund P has one-third of its funds invested in each of the three atocks. 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 Microsof Excel Online file below, Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the market risk premium (rMrRF) ? 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 15%, equal to 15%, or greater than 15% ? I. Tess than 15% II. greater than 15% III. equal to 15%

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