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9 1 points Consider the following information on a portfolio of three stocks: State of Probability of Stock A Stock B State of Stock C

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9 1 points Consider the following information on a portfolio of three stocks: State of Probability of Stock A Stock B State of Stock C Economy Economy Rate of Return Rate of Return Rate of Return Boom .15 .06 36 56 Normal .51 .14 .16 .24 Bust .34 20 -15 -39 eBook Hint Print References a. If your portfolio is invested 44 percent each in A and B and 12 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 3.95 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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