Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust Probability of State Stock A Rate of Stock B Rate of Stock C Rate of Economy of Return Return Return 1.04 .33 .13 .09 -15 -.14 .25 -60 .15 a. Expected return Variance Standard deviation b. Expected risk premium 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? 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 3.4 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. 1.55 .19 -.28 % % %