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Problem Walk$-$Through

$0$ and $1.)$

$\backslash$table$[[$Stock$,$Expected Return,Standard Deviation,Beta$],[$A$,9\mathrm{.}90\%,14\%,0\mathrm{.}8],[$B$,12\mathrm{.}65,14,1\mathrm{.}3],[$C$,13\mathrm{.}75,14,1\mathrm{.}5]]$

Fund $P$ has one$-$third of its funds invested in each of the three stocks. The risk$-$free rate is $5\mathrm{.}5\%,$ and the market is in equilibrium. $($That is$,$ required returns equal expected returns.$)$

a$.$ What is the market risk premium $(($:$r_M-r_{RF}$