Consider the following information on a portfolio of three stocks: State of Probability of State Stock...

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Consider the following information on a portfolio of three stocks: State of Probability of State Stock A Rate of Economy of Economy Return Stock B Rate of Return Stock C Rate of Return Boom Normal .15 .02 .32 .60 Bust .55 .30 .10 .16 .12 -.11 .20 -.35 a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? Note: 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? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Expected return Variance Standard deviation. b. Expected risk premium 23.03 % 0.03510 x 18.74 % 19.28% Consider the following information on a portfolio of three stocks: State of Probability of State Stock A Rate of Economy of Economy Return Stock B Rate of Return Stock C Rate of Return Boom Normal .15 .02 .32 .60 Bust .55 .30 .10 .16 .12 -.11 .20 -.35 a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? Note: 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? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Expected return Variance Standard deviation. b. Expected risk premium 23.03 % 0.03510 x 18.74 % 19.28%