Question: corriatien coefficient is between 0 and 1 ) Fund Phas one-thrd of its funds invested in esch of the three stocks. The thsk.free rate is
corriatien coefficient is between 0 and 1 ) Fund Phas one-thrd of its funds invested in esch of the three stocks. The thsk.free rate is 6.5%, and the market is in equilibrium. TThat is, required returns eoual erpected returis.) 3. What is the market risk premium (fin+ fre ) ? Pound your antwee to one decimal place. b. What is the beta of Fund 7 ? be not roind intermediate calculations. Round your answer to two decimal places: c. What is the required refum of fund p? Do not round intermediate calculations. flound vour answer to two decimat places. d. What would you expect the standard deviation of Fund P to be? 1. Lees theen 14% 11. Greater then 14% III. Eauel to 14%
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