EXEL

ty: CAPM, portfolio risk, and return 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 correlsted, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) 7.94 % 16% 16 16 0.7 9.62 11.30 1.5 Fund), 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 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 (r-Far)? 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 Back ie Open s b.i What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places. 1, less than 16% III, equal to 16% Check My Work , lil 11'1 alil template Saved File Home Insert Data Review View Tell me what you want to do L' Paste . $-% , Conditional Format Insert Delete Format Formatting as Table Clear . Font Tables B17 24 25 Stock more attractive to a 27 Stocks X and Y in amounts above 600% With new 30 increase in required return nisk premium, stock with larger New required return, Stock X 4 33 Change in required return, Stock X New required return, Stock Y 37 36 Change in required return, Stock Y 39 Stock with greater change in required returm 40 43 45 O Type here to search