Rate of Return if State Occurs
State of	Probability of
Economy	State of Economy			Stock A			Stock B			Stock C
Boom		.30			.20			.25			.60
Normal		.45			.15			.11			.05
Bust		.25			.01			.15			.50

If the expected T-bill rate is 3.80 percent, what is the expected risk premium on the portfolio?

If the expected inflation rate is 3.50 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?