Consider the following information about three stocks:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
		Stock A	Stock B	Stock C
Boom	.25	.13	.29	.60
Normal	.60	.08	.11	.13
Bust	.15	.02	.18	.45

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-2.	If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.)

a-3.	If your portfolio is invested 40 percent each in A and B and 20 percent in C, 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 3.70 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-2.	If the expected inflation rate is 3.30 percent, 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.)