You have been managing a $5 miliion portfolio that has a beta of 1.05 and a required rate of return of 13.925%. The current risk-free rate is 5%. Assume that you recelve another $500,000. It you invest the money in a stock with a beta of 1.35, what will be the required return on your $5.5 million portfollo? Do not round intermedlate calculations. Round your. answer to two decimal places. 10. Problem 8.13 (CAPM, Portfollo Risk, and Return) Consider the following information for stocks A;B, and C. The retums on the thred stocks are positively correiated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) 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 equinbrium. (That is, required returns equal expected returns) a. What is the market risk premium (htfy))3 hound your answer to one decimal place. b. What is the beta of Fund ? De net round intermed ate calculations. Round your answer to two secimat places. c. What is the required return of Fund P) Do not round intermediate calculations. Mound your answer to two decimal places. d. What weuld you expect the standard deviation of fund $ to be? 1. Less than 16% th. Greater than 16% 114. Equal to 16%