Consider the following information on three stocks:

State of economy Probability of state of economy Rate of Return if State Occurs Stock

Stock A Stock B Stock C

Boom 0.45 0.42 0.35 0.65

Normal 0.50 0.31 0.18 0.04

Bust 0.05 0.17 -0.17 -0.64

A portfolio is invested 35 percent each in Stock A and Stock B and 30 percent in Stock C. is the expected risk premium on the portfolio if the expected T-bill rate is 3.3 percent?

(Please show the solving steps with formulas)