Consider the following information about three stocks: Rate of Return If State Occurs State of Economy Stock A Stock B Stock C Probability of State of Economy .30 .40 .30 Boom Normal Bust .27 .23 .01 .32 .18 -.32 .55 .15 -.48 a-1. If your portfolio is invested 40 percent each in A and B and 20 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 4.90 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 4.40 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.) X Answer is complete but not entirely correct. Portfolio expected return 11.54 % a- 1. a- 2. Variance 0.05217 a- 3. Standard deviation 0.03 X % b. Expected risk premium 6.64 % C- 1. Approximate expected real return 7.14 % Exact expected real return 6.83 % C- 2. Approximate expected real risk premium 6.64 % Exact expected real risk premium 6.32 %