Consider the following information on a portfolio of three stocks: State of of Economy " Probability of Economy .15 State of 15 points Boom Normal Bust Stock A Stock B 1 Stock Rate of Return Rate of Return Rate of Return .04 .33 -55 .09 .15 -14 - 28 .19 25 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? (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.) Answer is complete but not entirely correct. % Expected return Variance Standard deviation Expected risk premium 10.56 0.01345 11.60 6.81 b. % %