$2$

$4$ points

$00$:$29$:$26$

Consider the following information about three stocks:

$\backslash$table$[[\backslash$table$[[$State of$],[$Economy$]],\backslash$table$[[$Probability of$],[$State of$],[$Economy$]],$Rate of Return if State Occurs$],[$Stock A$,$Stock B$,$Stock$],[$Boom$,0\mathrm{.}22,0\mathrm{.}30,0\mathrm{.}42,0\mathrm{.}58],[$Normal$,0\mathrm{.}46,0\mathrm{.}23,0\mathrm{.}21,0\mathrm{.}19],[$Bust$,0\mathrm{.}32,0\mathrm{.}01,-0\mathrm{.}22,-0\mathrm{.}50]]$

a$-1.$ If your portfolio is invested $25\%$ each in A and B and $50\%$ in $C,$ what is the portfolio expected return? $($Do not round intermediate calculations. Enter the answer as a percent rounded to $2$ decimal places.$)$

Portfolio expected return $\%$

a$-2.$ What is the variance? $($Do not round intermediate calculations. Round the final answer to $8$ decimal places.$)$

Variance

a$-3.$ What is the standard deviation? $($Do not round intermediate calculations. Enter the answer as a percent rounded to $2$ decimal places.$)$

Standard deviation $\%$

b$.$ If the expected T$-$bill rate is $4\mathrm{.}50\%,$ what is the expected risk premium on the portfolio? $($Do not round intermediate calculations. Enter the answer as a percent rounded to $2$ decimal places.$)$

Expected risk premium $\%$

c$-1.$ If the expected inflation rate is $2\mathrm{.}50\%,$ what are the approximate and exact expected real returns on the portfolio? $($Do not round intermediate calculations. Enter the answers as a percent rounded to $2$ decimal places.$)$

Approximate expected real return

Exact expected real return

$\backslash$table$[[,8]]$

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