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25 3.44 points eBook Hint Print References Consider the following information on a portfolio of three stocks: Probability of State of Economy 12 .53 .35
25 3.44 points eBook Hint Print References Consider the following information on a portfolio of three stocks: Probability of State of Economy 12 .53 .35 State of Economy Boom Normal Bust Stock A Stock B Rate of Return Rate of Return .09 17 18 .34 19 -.18 Stock C Rate of Return .53 27 -.37 a. If your portfolio is invested 36 percent each in A and B and 28 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., 32.16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 4.1 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.)
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