Consider the following information about three stocks: Probability of Rate of Return if State of Economy State State Occurs Stock A Stock B Stock C 0.24 Boom 0.35 0.36 0.55 0.13 Normal 0.50 0.17 0.09 -0.28 Bust 0.15 0.00 -0.45 a. What is the expected return of Stock A? The standard deviation? (6 points) b. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? The standard deviation? (13 points) c. If the expected T-bill rate is 3.8% and the portfolio has a beta of 1.6, what is expected market risk premium? (4 points)