Rate of Retum Ir State Occurs State of Economy Boom Normal Bust Probabdity of State of Economy 30 40 30 Stock A 27 23 01 Stock B 32 18 32 Stock 55 15 -.48 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 found Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) 0-2 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 4.90 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.) 6-1. If the expected inflation rate is 4.40 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, .9., 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 rounded to 2 decimal places, e.g., 32.16.) % % a-1. Portfolio expected return a-2. Variance a-3. Standard deviation b. Expected risk premium c-1. Approximate expected real return Exact expected real return c-2. Approximate expected real risk premium Exact expected real risk premium % % % % %