Consider the following information on a portfolio of three stocks: State of Probability of Stock Stock B Economy State of Economy Rate of Return Rate of Return Boom 15 02 32 Normal 55 10 12 Bust 30 16 16 - 11 Stock C Rate of Return 60 20 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? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., 32.16161. Enter your other answers as a percent rounded to 2 decimal places, e.g. 32.16.) 196 Expected return Variance Standard deviation 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.) % Expected risk premium Hints References eBook & Resources Hint #1 Check my work