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nent 700 Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy 0.25 0.40 0.35 Rate of

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nent 700 Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy 0.25 0.40 0.35 Rate of Return If State Occurs Stock A Stock B Stock C 0.32 0.44 0.60 0.24 0.22 0.20 0.02 -0.24 -0.40 0-1. If your portfolio is invested 30% each in A and B and 40% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Portfolio expected return 0-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) % ent ences Variance 2-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation % b. If the expected T-bill rate is 4.60%, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium 1% Expected risk premium % c-1. If the expected inflation rate is 2.60%, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) ak nces 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 the answers as a percent rounded to 2 decimal places.) Approximate expected real risk premium Exact expected real risk premium

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