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Consider the following information about three stocks Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B

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Consider the following information about three stocks Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock Boom 25 22 34 56 Normal 48 19 17 15 Bust 27 03 35 44 0-1. If your portfolio is invested 45 percent each in A and B and 10 percent in what is the portfolio expected return? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, ..., 3216) Q- What is the variance? (Do not found intermediate calculations and round your 2. answer to 5 decimal places, eg...16161.) - What is the standard deviation? (Do not round Intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, 9. 32.16.) b. If the expected T-bul rate is 3.90 percent, what is the expected nisk premium on the portfolio? (Do not round Intermediate calculations and enter your answer os percent rounded to 2 decimal places, e.g. 3216) c-1. If the expected Inflation rate is 3.50 percent, what are the aproximate 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. What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, ... 32.16.) and 4.32.16) isk premiums on the portfolio? and enter your answers as a percent e.g., 32.16.) a-1. X Portfolio expected return a-2. Variance a-3. Standard deviation b. Expected risk premium C-1. Approximate expected real retum Exact expected real retum c-2. Approximate expected real risk premium Exact expected real risk premium % % %

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