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Consider the following information about three stocks: table [ [ table [ [ State of ] , [ Economy ] ] ,
Consider the following information about three stocks:
tabletableState ofEconomytableProbability ofState ofEconomyRate of Return if State OccursStock AStock BStock CBoomNormalBust
a If your portfolio is invested each in A and and in 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.
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 premium
Exact expected real risk premium
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