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please show excel work Video Excel Online Structured Activity: CAPM, portfolio risk, and return Consider the following information for three stocks, Stocks A, B, and

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Video Excel Online Structured Activity: CAPM, portfolio risk, and return 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.) Stock Standard Deviation Beta A 16 % 0.8 Expected Return 8.94% 10.23 11.95 B 16 1.1 16 1.5 Fund P has one-third of its funds invested in each of the three stocks. 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 spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the market risk premium (M-PRP)? 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. The risk-free rate is 5.5%, and the market is in equilibrium. (The returns equal expected returns.) The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform analysis to answer the questions below. X Open spreadsheet a. What is the market risk premium (M-TRF)? 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 16%? 1. less tharl 16% II. greater than 16% III. equal to 16% Check My Work Reset Problem M 5.50% Formula Formula Formula Stock A 8.94% 16.00% 0.80 Stock B 10.23% 16.00% 1.10 Stock C 11.95% 16.00% 1.50 CAPM, portfolio risk, and 1 return 2 3 Risk-Free Rate, RF 4 5 6 Expected Return 7 Standard Deviation 8 Beta 9 10 Market Risk Premium, RPM 11 12 % Stock in Fund P 13 14 Beta of Fund P 15 16 Required Return of Fund P 17 18 Expected Return of Fund P 19 20 21 #N/A #N/A #NA 0.333333 0.333333 0.333333 #N/A #N/A #N/A

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