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Fund P has one - third of its funds invested in each of the three stocks. The risk - free rate is 5 . 5
Fund has onethird of its funds invested in each of the three stocks. The riskfree rate is and the market is in equilibrium. That is required returns equal expected returns.
a What is the market risk premium Round your answer to one decimal place.
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 What would you expect the standard deviation of Fund to be
I. Less than
II Greater than
III. Equal to
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