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Conslder the following Information about three stocks: Rate of Return If State Occurs State of Probablity of Economy Economy Boom Normal Bust State of Stock
Conslder the following Information about three stocks: Rate of Return If State Occurs State of Probablity of Economy Economy Boom Normal Bust State of Stock A Stock B Stock C 15 a-1 If your portfollo is Invested 40 percent each in A and B and 20 percent In C. what Is the portfollo expected return? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 3216.) a- What Is the varlance? (Do not round Intermedlate calculations and round 2 your answer to 5 decimal places, e.g., 16161.) a- What Is the standard devlation? (Do not round Intermedlate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 3216.) b. If the expected T-bll rate Is 3.80 percent, what is the expected risk premlum on the portfollo? (Do not round intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216.) C-1. If the expected Inflation rate Is 3.30 percent, what are the approximate and exact expected real returns on the portfollo? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 3216.) c- What are the approximate and exact expected real risk premlums on the portfolio? 2 (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 3216.) a-1. Portfolio expected return a-2 Variance a-3. Standard deviation b. Expected risk premium c-1. Approximate expected real return Exact expected real return c-2. Approximate expected real risk premium Exact expected real risk premium
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