c-1. If the expected inflation rate is 3.00 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Rate of Return If State Occurs State of Probability of Economy Economy Boom Normal Bust State of Stock A Stock C .25 .50 .25 .34 -14 .05 Stock B .46 -12 -.26 .58 .10 -.46 Rate of Return If State Occurs State of Probability of Economy Economy Boom Normal Bust State of Stock A Stock C .25 .50 .25 .34 -14 .05 Stock B .46 -12 -.26 .58 .10 -.46