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I have already asked for help on this question, however the answer I was given was incorrect. I am needing help with the two questions
I have already asked for help on this question, however the answer I was given was incorrect. I am needing help with the two questions at the bottom on part c-2. I would appreciate to see how to calculate it by hand because I have an exam.
of Probability of Rate of Return If State Occurs State Economy Boom Normal Bust State of Economy .20 Stock A Stock B 36 13 -.28 Stock C .55 09 24 17 .25 -.45 a-1 If your portfolio is invested 40 percent each in A and B and 20 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 a-2 What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) (0b Variance 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 3.80 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 3.50 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 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, e.g 32.16.) Approximate expected real risk premium Exact expected real risk premiumStep by Step Solution
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