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	.15	.08	.33	.44
Normal	.54	.16	.28	.26
Bust	.31	.17	.27	.36

A. If your portfolio is invested 38 percent each in A and B and 24 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.

B. If the expected T-bill rate is 4.55 percent, what is the expected risk premium on the portfolio?

\begin{tabular}{|l|l|l|} \hline a. Expected return & & % \\ \hline Variance & & \\ \hline Standard deviation & & % \\ \hline b. Expected risk premium & & % \\ \hline \end{tabular}