Beta Excel Online Structured Activity: CAPM portfello 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 Expected Return Standard Deviation 9.42% 14 0. B 11.38 14 1:2 16 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 equat expected returns The data has been collected in the Microsoft Excel Online Nie below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the market risk premium () Round your answer to two decimal places b. What is the beta of Fund 77 Do not round intermediate calculations. Round your answer to two decimal places c. What is the required return of Fund 17 Du not round intermediate Calestation Hound your answer to two decimal places a would you expect the standard deviation of Fund P to be less than 10, count to 14 or greater than 1**? 1. less than 10 1 greater than 14% Check My Won B10 8 > E F G 1 K M 5.50% Formula Formula Formula Stock A 9.42% 1400% 0.80 Stock B 11,38% 14.00% 120 Stock 13 34% 14.00% 160 CAPM, portfolio risk, and 1 return 2 3 Risk Free Rate RF 4 5 6 Expected Retum 2 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 WNIA UNA INA 0.333333 0.333333 0.333333 WNIA WNIA UNA