Calculation Questions (79 Points) 1. Rate of Return if State Occurs Stock Probability of State of Economy 0.30 Stock A State of the Economy Recession Normal Boom B -0.17 0.04 0.09 0.30 0.12 0.40 0.17 0.27 a. What are the expected return and standard deviation of stock A and stock B? (6 Points) b. If you invest 75% of your own money in Stock A and the rest in Stock B, what is the expected return and standard deviation of your portfolio? (10 Points) c. What is the risk premium of stock A, stock B, and your portfolio if the T-bill now yields 1.5%? (3 Points)