Consider the following information about three stocks: Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy .25 .60 .15 Stock A .13 .08 .02 Stock B .29 .11 Stock C .60 .13 -.45 -.18 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- What is the variance? (Do not round intermediate calculations and round 2. your answer to 5 decimal places, e.g., .16161.) a- What is the standard deviation? (Do not round intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.70 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 3.30 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- 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, e.g., 32.16.) Answer is complete but not entirely correct. a-1. Portfolio expected return 11.01 % a-2. Variance 0.01841 a-3. Standard deviation 13.57 % 7.31% 7.71% 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 7.46 % 4.01 X % 3.88 X %