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8 10 points Consider the following information on a portfolio of three stocks State of Probability of Stock A Stock B Stock C State of

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8 10 points Consider the following information on a portfolio of three stocks State of Probability of Stock A Stock B Stock C State of Economy Rate of Return Rate of Return Rate of Return Economy Boom 14 05 35 47 Normal 52 13 25 23 Bust 34 19 -24 - 38 eBook Print References a. If your portfolio is invested 42 percent each in A and B and 16 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.... 32.16.) b. If the expected T-bill rate is 44 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.) % a. Expected return Variance Standard deviation b. Expected risk premium %

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