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Problem 13-23 Portfolio Returns and Deviations (L01, 2) Consider the following information about three stocks: Probability of Rate of Return if State Oecurs State of

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Problem 13-23 Portfolio Returns and Deviations (L01, 2) Consider the following information about three stocks: Probability of Rate of Return if State Oecurs State of State of Beonomy Economy Stock A Stock B Stock C Boom 0.25 0.28 0.40 0.52 Normal 0.40 0.11 0.09 0.07 Bust 0.35 0.02 -0.22 -0.42 a-1. If your portfolio is invested 35% each in A and B and 30% 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 a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Variance a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation 0 % b. If the expected T-bill rate is 3.20%, 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 on? Do not round b. If the expected T-bill rate is 3.20%, 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 c-1. If the expected inflation rate is 2.10%, 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.) 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 riuk premium Exact expected real risk premium

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