Check Consider the following information about three stocks: Rate of Return If State Occurs State of Economy Stock A Probability of State of Economy 20 45 35 Boom Normal Bust 28 .22 Stock B 40 .20 -20 Stock C hos 56 18 - 48 .00 a-1. If your portfolio is invested 30 percent each in A and B and 40 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.) a-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. If the expected T-bill rate is 4.20 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.) C-1. If the expected inflation rate is 3.80 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.) 8.65% 0.06920 26.27 % 4.45% a-1. Portfolio expected return a-2. Variance a-3. Standard deviation Expected risk premium Approximate expected real return Exact expected real return c-2. Approximate expected real risk premium Exact expected real risk premium b. c-1