C. Consider the following information about three equities: State of Economy Probability Equity A Equity B Equity C Boom 0.25 0.24 0.34 0.53 Good 0.50 0.17 0.17 0.11 Recession 0.25 0.00 -0.30 -0.45 Required: (0) If your portfolio is invested 35 per cent each in A and B and 30 per cent in C, what is the portfolio expected return? What is the variance of the portfolio? What is the portfolio standard deviation? (iv) If the expected T-bill rate is 4.1 per cent, what is the expected risk premium on the portfolio? If the expected inflation rate is 3.5 per cent, what are the: (a) approximate expected real return on the portfolio? (b) exact expected real returns on the portfolio? [13 marks] (v)