Question: please explain with details because the other solutions are wrong. 4- Consider the following information for three stocks, Stocks X,Y, and Z. The returnson the
4- Consider the following information for three stocks, Stocks X,Y, and Z. The returnson the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Fund Q 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 equalexpected returns.) a. What is the market risk premium (rMrRRF) ? b. What is the beta of Fund Q? C. What is the required return of Fund Q? d. Would you expect the standard deviation of Fund Q to be less than 15%,equal to 15%, or greater than 15% ? Explain
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