Please answer this question without the use of excel. Do explain each step clearly.

Your employer has asked you to investigate the firm's portfolio risk and return. The portfolio comprises three stocks. It is invested 50 percent in stock A, 30 percent in stock B and 20 percent in stock C. You gathered the following information: TABLE 1. Fim Portfolio Data - Expected retums on component stocks (\%) in function of the state of the economy (a) Determine what is the portfolio's expected return. (8 marks) (b) Determine the portfolio's variance and standard deviation. (8 marks) (c) Assume that the expected risk-free rate is 2.75 percent. Determine the expected risk premium on the portfolio. (4 marks)