i.There are three popular stocks with the following information. (02)

Stocks Expected Return Standard Deviation Beta

Alpha 11% 17% 0.7

Bravo 13% 17% 1.3

Charlie 15% 17% 1.8

You have invested one-third of your assets in each of the three stocks. The risk-free rate is 7%, and the market is in equilibrium.

a. Calculate the market risk premium?

b. Calculate the beta of your investment?

c. Calculate the expected return of your investment?

d. what do you think the standard deviation your investment would be equal or unequal to the standard deviation of each stock? Explain.