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calculate just question c-2 Consider the following information about three stocks: Rate of Return It State Occurs State of Stock A Economy Boom Normal Probability

calculate just question c-2
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Consider the following information about three stocks: Rate of Return It State Occurs State of Stock A Economy Boom Normal Probability of State of Economy 20 50 30 38 21 05 Stock B 50 16 - 28 Stock C 54 13 -45 Bust 0-1. If your portfolio is invested 35 percent each in A and B and 30 percent in C what is the portfolio expected return? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round Intermediate calculations and round your answer to 5 decimal places, e.g. 16161.) 0-3. What is the standard deviation? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. y the expected T-biltrate 15 4.70 percent. What is the expected risk premium on the portfolio? (Do not round Intermediate calculations and enter your answer as percent rounded to 2 decimal places, e.g. 32.16) c-1. If the expected inflation rate is 420 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, eg 32.16.) c-2. What are the approximate and exact expected realisk 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.) 56 a-2 56 1-1. Portfolio expected return Vstiance a-3. Standard deviation b. Expected risk premium 0-1. Approximate expected real return Exact expected real retum c-2. Approximate expected realisk premium Exact expected realisk premium 56 st 6 95

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