Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy 26 50 24 Portfolio expected return Standard deviation Rate of Return if State Occurs Stock A 32 13 04 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Stock B 44 11 -25 a-2What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance a-3What is the standard deviation? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Approximate expected real return Exact expected real return % b. If the expected T-bill rate is 3.30 percent, what is the expected risk premium on the portfolio? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected risk premium c-11f the expected inflation rate is 2.90 percent, what are the approximate and exact expected real returns on the portfolio? Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate expected real risk premium Exact expected real risk premium - Stock C 56 09 -45 % % % c-2 What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % %

Consider the following information about three stocks: a-1If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portiolio expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.9, 32.16) a-2 What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g, 32.16161) a-3What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.30 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e,g, 3216) c-1if the expected infiation rate is 290 persent, what are the approximate and exact expected real returns on the portolio? tho not round intermediate calculations. Enter your answors as a percent rounded to 2 decimal places, e.g, 32.16.) c-2What are the approximate and exact expected real risk premlums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 declmal places, e. .32 .16 .)