What is the market risk premium (rn-rRF)? 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 2 3 4 A CAPM, portfolio risk, and return Risk-Free Rate, rRF 5 6 Expected Return 7 Standard Deviation Beta 8 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 B 5.50% Stock A 8.94% 16.00% 0.80 0.333333 C D Formula #N/A #N/A #N/A #N/A E F Stock B 10.66% 16.00% 1.20 0.333333 G H Formula #N/A I J Stock C 12.38% 16.00% 1.60 0.333333 K L Formula #N/A M