Please solve a b c and d

4. problem 8.13 (CAPM, eBook Keep the Highest 7 Portfolio Risk, and Return) Problem Walk-Through Consider the following information for stocks A, B, and C. The retums on the three stocks are positiveiy correlated, but they are not perfectly correlated. (That Is, each of the correlation coemcients is between 0 and 1.) Stock Expected Return Standard Deviation Beta c 825% 9.25 10.75 16 16 0.7 1.1 1.7 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate Is 6.5%, and the market is in equilibrium. (That is, required returns equal expected returns.) a. What is the market risk premium (ry - rRF)? 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 retum 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 P to be? I. Less than 16% II. Greater than 16% m. Equal to 16% -Select- v