Considered the following information for three stocks stocksXY&Z. The returns on

Considered the following information for three stocks stocksXY&Z. The returns on the three stocks are positively correlated but they are not perfectly correlated.Stock Expected Return Standard deviation betaX 9% 15% 0.8Y 10.75 15 1.2Z 12.5 15 1.6Fund Q has one-third of its funds invested in each of the threestocks. The risk-free rate is 5.5% and the market is inequilibrium.(a) What is the market risk premium?(b) What is the beta of Fund Q?(c) What is the expected return of fund Q?(d) Would you expect the standard deviation of Fund Q to be lessthan 15% equal to 15% or greater than 15%? Explain.