videre E l Online Structured Activity: CAPM, portfolio risk, and return Consider the following information for three stocks, Stocks A, B, and C. The return 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.) Beta Stock Expected Return Standard Deviation 16% 10.42 12.06 Fund has one-third of its funds invested in each of the three stock. 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. X Open spreadsheet ) Round your answer to two decimal places a. What is the market risk premium 1. What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places 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 10%, equal to 16%, or greater than 10%? L. less than 16% II greater than 10% III equal to 16%