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Problem 1 3 - 2 3 Portfolio Returns and Deviations [ LO 2 ] Consider the following information about three stocks: table [ [

Problem 13-23 Portfolio Returns and Deviations [LO2]
Consider the following information about three stocks:
\table[[,,Rate of Return if State Occurs],[State of Economy,Probability of State,,,,],[Boom,of Economy,Stock A,Stock B,Stock C,],[Normal,20,20,32,54,],[Bust,45,18,16,14,]]
0-1. 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 and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
-2. What Is the varlance? (Do not round intermedlate 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 3.80 percent, what is the expected risk premium on the portfolio? (Do not round intermedlate 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 3.40 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,3216.)
c-2. What are the approximate and exact expected real risk premiums on the portfolio?
(Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
\table[[a-1. Portfolio expected return,PI,|%|
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