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Consider the following Information on three stocks: Rate of Return If State Occurs Probability of State of Economy Stock i Stock Stock c State of

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Consider the following Information on three stocks: Rate of Return If State Occurs Probability of State of Economy Stock i Stock Stock c State of Economy Boom Normal Bust .60 . 15 13 .11 a-1 If your portfolio Is Invested 25 percent each In A and B and 50 percent in C, what is the portfolio expected return? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return 11.45 % a-2 What is the variance? (Do not round Intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Varlance D a-3 What is the standard deviation? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation b. If the expected T-bill rate is 3.50 percent, what is the expected risk premium on the portfolio? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected risk premium c-1 If the expected Inflation rate is 3.10 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate expected real return Exact expected real return

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