Everything marked in green is correct, please answer parts c-1 and c-2

12 Award: 7.50 out of 10.00 points You did not receive full credit for this question in a previ Consider the following information about three stocks: Rate of Return If State occurs State of Probability of Economy State of Economy Boom .20 Stock A .28 Stock B 40 .20 Stock C .56 18 Normal 45 Bust .35 00 .20 48 a-1 If your portfolio is invested 30 percent each in A and B and 40 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, eg., 32.16.) Portfolio expected return 8.65 0 % a-2 What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, eg, 3216161.) Variance 06902 0 a-3 What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, eg, 32.16.) Standard deviation 26.27 0 % b. If the expected T-bill rate is 4.20 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, eg., 32.16.) Expected risk premium 4.45 0 % C-1 If the expected inflation rate is 3.80 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, eg., 32.16.) Approximate expected real return Exact expected real return 4.85 0 % 4.67 0 % C-2 What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, eg, 32.16.) Approximate expected real risk premium Exact expected real risk premium 47 % 45 %