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 .14 .09 .34 .43 Normal .53 .17 .29 .27 Bust .33 .18 .28 .37 If your portfolio is invested 36 percent each in A and B and 28 percent in C, what is the portfolios 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.

If the expected T-bill rate is 4.6 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.