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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

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 C
Boom .25 .28 .40 .52
Normal .40 .11 .09 .07
Bust .35 .02 .22 .42

a-1.

If your portfolio is invested 35 percent each in A and B and 30 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 3.10 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 2.70 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.)

Ps: I just need question A2 e C2. I did something wrong and I cant get the right result.

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