Consider the following information about three stocks: Rate of Return if State Occurs State ofProbability of EconomyState of EconomyStock A Stock B...

Consider the following information about three stocks:

  Rate of Return if State Occurs  State ofProbability of  EconomyState of EconomyStock AStock BStock C  Boom .25  .30  .42  .54   Normal .45  .12  .10  .08   Bust .30  .03 -.24 -.44 

a-1.If your portfolio is invested 45 percent each in A and B and 10 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Portfolio expected return % 

a-2.What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)

  Variance  

a-3.What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Standard deviation % 

b.If the expected T-bill rate is 3.20 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Expected risk premium % 

c-1.If the expected inflation rate is 2.80 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

    Approximate expected real return %   Exact expected real return % 

c-2.What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

    Approximate expected real risk premium %   Exact expected real risk premium %