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please help full problem Excel Online Structured Activity: CAPM, poetfolio nisk, and return Coneider the following information for three stocks, Stocks A, B, and C.
please help full problem
Excel Online Structured Activity: CAPM, poetfolio nisk, and return Coneider the following information for three stocks, Stocks A, B, and C. The roturns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficents is between 0 and 1.) Fund P has onetherd of its funds invested in each of the three stocks. The risk free rate is 5.5%, and the marluet it in eaulbrium. (That is, fequired returns equal expected retarns.) The data has been collected in the Microsoft Ercel Onbine (le below. Open the spreadshect and oerform the required analysis to answer the questions below. a. What is the market risk premium (rMrRF) ? Round your answer to two decinal places. Fi 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 deomal places. 10 d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15%, or greater than 15% ? 1. less than 15% II. greater than 15% III. equal to 15% Step by Step Solution
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