Excel Online Structured Activity: CAPM, portfolio 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 Standard Deviation Beta Expected Return 8.78 % 10.42 16 % 0.8 1.2 12.06 16 1.6 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 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 ( RF)? Round your answer to two decimal places CAPM, portfolio risk, and return Risk-Free Rate, IRF 5 50% Formula Stock Formula Formula 6 7 8 Expected Return Standard Deviation Beta Stock A 8789 1600% 0.80 10.429 16 009 Stock C 12.06% 16.00% 160 1.20 10 Market Risk Premium, RPM 12 % Stock in Fund P 0333333 0.333333 0333333 14 Beta of Fund P 16 Required Return of Fund P INA 18 Expected Return of Fund P NA