Consider the following information about three stocks: State of Economy Probability Stock A Stock B Stock C Boom 0.20 0.24 0.36 0.55 Normal 0.55 0.17 0.13 0.09 Bust 0.25 0.00 -0.28 -0.45 Instructions: a) If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? The variance? The standard deviation? b) If the expected T-bill rate is 3.80%, the expected inflation rate is 3.50% what are the approximate and exact expected real returns on the portfolio? what is the approximate real risk premium? Show your steps.