Consider the following information on a portfolio of three stocks:

State of	Probability of			Stock A			Stock B			Stock C
Economy	State of Economy			Rate of Return			Rate of Return			Rate of Return
Boom		.12			.03			.33			.49
Normal		.54			.11			.23			.21
Bust		.34			.17			.22			.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? (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.)

Expected return		9.17%
Variance	.02056
Standard deviation	14.34	%

b. If the expected T-bill rate is 4.3 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 %