Consider the following information on a portfolio of three stocks:

State of Economy	Probability of State of Economy	Stock A Rate of Return	Stock B Rate of Return	Stock C Rate of Return
Boom	.15	.04	.33	.55
Normal	.60	.09	.13	.19
Bust	.25	.15	.14	.28

a.	If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolios expected return? The variance? The standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	If the expected T-bill rate is 3.75 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.)

A. Expected Return

Variance

Standard Deviation

B. Expected Risk Premium