What is the market risk premium (rM – rRF)? What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.

Question and answer

• What is the market risk premium (r_M – r_RF)? Round your answer to two decimal places.
• 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.
• Would you expect the standard deviation of Fund P to be less than 14%, equal to 14%, or greater than 14%?
  1. less than 14%
  2. greater than 14%
  3. equal to 14%