Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy Variance 0.25 0.50 0.25 Rate of Return if State Occurs Stock B Stock C 0.46 0.58 0.12 0.10 -0.26 -0.46 a-1. If your portfolio is invested 20% each in A and B and 60% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Portfolio expected return a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Stock A 0.34 0.14 0.05 Standard deviation a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) % % b. If the expected T-bill rate is 3.50%, 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.)

Consider the following information about three stocks: -1. If your portfolio is invested 20% each in A and B and 60% in C, what is the portfolio expected return? (Do not round intermediate colculations. Enter the answer as a percent rounded to 2 decimal places.) Portfolio expected retum Q.2. What is the variance? (Do not round intermediate colculotions. Round the final answer to 8 decimal places.) Variance - 3. What is the standard deviation? (Do not round intermediate colculations. Enter the answer as a percent rounded to 2 decimol ploces.) Standard deviation b. If the expected T.bal rate is 3.50%, what is the expected lisk premium on the portfolio? (Do not round intermediate calculations. Enter the answer os o percent rounded to 2 decimal ploces.)