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Consider the following information about three stocks: Consider the following information about three stocks: Rate of Return if State Occurs State of Economy Boom Normal

Consider the following information about three stocks:
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Consider the following information about three stocks: Rate of Return if State Occurs State of Economy Boom Normal Bust Probability of State of Economy .20 .50 .30 Stock A .26 .10 .01 Stock B .38 .08 - 20 Stock C .50 1.06 -40 0-1. 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 os a percent rounded to 2 decimal places, e.g., 32.16.) 0-2. What is the variance? (Do not round intermediate calculations and round your onswer 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. If the expected T-bill rate is 3.00 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 2.60 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.) % % % a-1. Portfolio expected return a-2. Variance a-3. Standard deviation b. Expected risk premium C-1. Approximate expected real return C-1. Exact expected real return C-2. Approximate expected real risk premium C-2. Exact expected real risk premium % % % %

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