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*Only need help with C-2, appproximate expected and exact Rate of Return If State Occurs State of Economy Stock A Stock B Stock C Probability

image text in transcribedimage text in transcribed*Only need help with C-2, appproximate expected and exact

Rate of Return If State Occurs State of Economy Stock A Stock B Stock C Probability of State of Economy .30 .40 .30 Boom Normal Bust .36 .15 .06 .48 .13 -.28 .60 .11 -.48 a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.50 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) C-1. If the expected inflation rate is 3.10 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent a- 1. Portfolio expected return 11.45 % a- Variance 0.09728 2. a- 3. Standard deviation 31.19 % b Expected risk premium 7.95 % C- 8.35 Approximate expected real return 1. % Exact expected real return 8.10 % C- 2. Approximate expected real risk premium 4.85 X % Exact expected real risk premium 4.60 X %

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