State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .15 .06 .36 .56 Normal .51 .14 .16 .24 Bust .34 .20 .15 .39 If your portfolio is invested 44 percent each in A and B and 12 percent in C, what is the portfolios expected return, the variance, and the standard deviation? If the expected T-bill rate is 3.95 percent, what is the expected risk premium on the portfolio