Screen Shot 2020-04-15 at 10.26.45 PM Q Search Screen Shot 2020-04-15 at 10.26.58 PM O @ @ Chapter 13 Pre-Built Problems i Saved Help a Q Q Search Consider the following information about three stocks: a-1. Portfolio expected return a-2. Variance Rate of Return If State Occurs 10 points C-1. State of Economy Boom Normal Bust Probability of State of Economy Stock C Stock A .25 b. Expected risk premium Approximate expected real return Exact expected real return C-2. Approximate expected real risk premium Exact expected real risk premium Stock B .30 17 -.30 eBook 22 .56 .14 -.46 .45 .30 Hint Print References a-1. If your portfolio is invested 30 percent each in A and B and 40 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.) a-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.) If the expected T-bill rate is 4.80 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.) C-1. If the expected inflation rate is 4.30 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, e.g., 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.)