Portfolio Returns and Deviations Consider the following information about three stocks:

$\backslash$table$[[\backslash$table$[[$State of$],[$Economy$]],\backslash$table$[[$Probability of$],[$State of Economy$]],$Rate of Return if State Occurs$],[$Stock A$,$Stock B$,$Stock C$],[$Boom$,\mathrm{.}25,\mathrm{.}25,\mathrm{.}35,\mathrm{.}40],[$Normal$,\mathrm{.}55,\mathrm{.}18,\mathrm{.}13,\mathrm{.}03],[$Bust$,\mathrm{.}20,\mathrm{.}03,-\mathrm{.}18,-\mathrm{.}45]]$

a$.$ If your portfolio is invested $40$ percent each in A and $B$ and $20$ percent in $C,$ what is the portfolio expected return? The variance? The standard deviation?

b$.$ If the expected T$-$bill rate is $3\mathrm{.}80$ percent, what is the expected risk premium on the portfolio?

c$.$ If the expected inflation rate is $3\mathrm{.}50$ percent, what are the approximate and exact expected real returns on the portfolio? What are the approximate and exact expected real risk premiums on the portfolio?