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Consider the following information about three stocks: State ofEconomyProbability of State of EconomyRate of Return if State OccursStock AStock BStock CBoom 0 . 2 0
Consider the following information about three stocks: State ofEconomyProbability of State of EconomyRate of Return if State OccursStock AStock BStock CBoom Normal Bust a If your portfolio is invested each in A and B and in C what is the portfolio expected return? Do not round intermediate calculations. Enter the answer as a percent rounded to decimal places. Portfolio expected return a What is the variance? Do not round intermediate calculations. Round the final answer to decimal places. Variance a What is the standard deviation? Do not round intermediate calculations. Enter the answer as a percent rounded to decimal places. Standard deviation b If the expected Tbill rate is what is the expected risk premium on the portfolio? Do not round intermediate calculations. Enter the answer as a percent rounded to decimal places. Expected risk premium c If the expected inflation rate is 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 decimal places. Approximate expected real returnExact expected real return c 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 decimal places. Approximate expected real risk premiumExact expected real risk premium
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