Excel Online Structured Activity: CAPM, portfolio risk, and return

coefficients is between $0$ and $1.)$

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 $(r_M-r_{RF})?$ Round your answer to two decimal places.

$\%$

b$.$ What is the beta of Fund P$?$ Do not round intermediate calculations. Round your answer to two decimal places.

c$.$ What is the required return of Fund P$?$ Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

d$.$ Would you expect the standard deviation of Fund $P$ to be less than $14\%,$ equal to $14\%,$ or greater than $14\%?$

I. less than $14\%$

II$.$ greater than $14\%$

III. equal to $14\%$

CAPM, portfolio risk, and

return

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$ 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 $P$

$19$

$20$

$21$

$27$

B

C

Risk$-$Free Rate, rRF

Expected Return

Stock A

Standard Deviation

Beta

D

B