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please help with the market risk premium and true or false as I am stuck Consider the following information for Stocks A,B, and C. The

please help with the market risk premium and true or false as I am stuck image text in transcribed
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Consider the following information for Stocks A,B, and C. The returns on the three stocks, while positwely correlated, are not perfecthy correlated. The risk.free rate is 4.50%. Assume that the market is in cquilibrium, with the required rate of retums equal to expected retums. According to the video, which equation most dosely describes the relationship between required returns, beta, and the inarket nsk premum? r1=rMF+b(rN+rNH)r1=rRF+rwFbri=rHrb(rMrNr)r1=rR+b(rMrM) Hint: Alecall that because the market is in equibirium, the required rate of retam is equal to the enpected rate of return for each stock: Hint: Recall that because the market is in equilibrium, the required rate of return is equal to the expected rate of return for each stock. Using the equation you just identified, you can solve for the market risk premium which, in this case, equals approximately Consider Fund P, which has one third of its funds invested in each of stock A,B, and C. True or false: The beta for a fund is equal to the weighted average of the betas of the individual stocks in the fund. True False Using your answer to the previous question, the beta for Fund P is approximately You have the market risk premium, the beta for Fund P, and the risk-free rate. Hint: Recall that because the market is in equibnum, the required rate of return is equal to the expected rate of return for each stock. This information implies that the required rate of return for fund P is approximately True or false: The standard deviation for Fund P is less than 10% True False

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