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Consider the following information about three stocks State of Economy Boon Normal Bust Probability of State of Economy 0.20 0.50 0.30 Rate of Return if

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Consider the following information about three stocks State of Economy Boon Normal Bust Probability of State of Economy 0.20 0.50 0.30 Rate of Return if State Occurs Stock A Stock B stock 0.38 0.se 0.54 0.21 0.16 a. 13 0.05 0.28 -0.45 N a 1. If your portfolio is invested 35% each in A and B and 30% in a what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places. s Portfolio expected return 11.38 % a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation % b. If the expected T-bill rate is 4.90%, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium % c-1. If the expected inflation rate is 2.90%, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) Approximate expected real return Exact expected real return c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) Approximate expected real risk premium Exact expected real risk premium

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