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. Consider the following information about three stocks: a-1. If your portfolio Is invested 30 percent each in A and B and 40 percent in
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Consider the following information about three stocks: 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 Intermedlate calculations and round your answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round Intermedlate 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 4.80 percent, what is the expected risk premium on the portfolio? (Do not round intermedlate calculatlons and enter your answer as a percent rounded to 2 declmal places, e.g., 32.16.) c-1. If the expected inflation rate is 4.30 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round Intermedlate 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 Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)Step by Step Solution
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