Chapter 6 Homework: Excel C X MindTap - Cengage Learning X Excel Online Student Work X ChatGPT C about:blank G E New Chrome available : Imported From IE to my.tcu.edu . Outlook Library Genesis -... M eBooks - My Book... ISAC Sign In to your LS... * Dashboard Orange: Connect -... A Installs a compute... 2021 EFMD Case.. template - Saved v Search for tools, help, and more (Option + Q) File Home Insert Share Page Layout Formulas Data Review View Help Draw Editing Comments Arial 10 A" A BI U V OV Av ... EvS General . 0 8 B V # v B V Q v q v B y E v Q V V V Q V B V ... 122 X fx B C D E F G H K M N O Q R S U V W X CAPM, portfolio risk, and return 2 Risk-Free Rate, rRF 5.00% 4 5 Stock A Formula Stock B Formula Stock C Formula 6 Expected Return 8.29% 10.17% 12.05% 7 Standard Deviation 15.00% 15.00% 15.00% 8 Beta 0.70 1.10 1.50 10 Market Risk P #N/A #N/A #N/A 11 12 % Stock in Fund P 0.333333 0.333333 0.333333 13 14 Beta of Fund P #N/A 15 16 Required Return of Fund P #N/A 17 18 Expected Return of Fund P #N/A 19 20 21 22 23 24 25 26 27 28 E Sheet1 + Workbook Statistics Give Feedback to Microsoft - 100% +Chapter 6 Homework: Excel C x MindTap - Cengage Learning X ChatGPT X Consider the following inform x 2% ng.cengage.com/staticb/ui/evo/index.html?deploymentld=6117552510123817995268098889&elSBN=9780357714683&id=2097994397&snapshotld=3992571& Q R G E New Chrome available : Imported From IE to my.tcu.edu . Outlook Library Genesis -... M eBooks - My Book... ISAC Sign In to your LS... Dashboard & Orange: Connect -.. A Installs a compute.. 2021 EFMD Case... CENGAGE | MINDTAP Search this course ? Excel Online Activity: CAPM, portfolio risk, and return X Question 1 10/20 Video A- Z Submit Excel Online Structured Activity: CAPM, portfolio risk, and return 1 office 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 Beta 8.29 % 15 % 0.7 FI B 10.17 15 1.1 12.05 15 1.5 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 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 (I'M - RF)? Round your answer to two decimal places. 5.0 *% b. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places. 1.1 0 C- c. What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places. 11.0 * % d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15%, or greater than 15%? I. less than 15% II. greater than 15% III. equal to 15% Check My Work Reset Problem Back Autosaved at 8:21 AM Next