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\table[[,\table[[Probability of State],[of Economy]],Kate of Return It State Uccurs],[State of Economy,.22,Stock,Stock B,Stock C,],[Boom,.46,.30,.42,.58,],[Normal,.32,.23,.21,.19,],[Bust,.01,-.22,-.50,,]]
a-1. If your portfolio is invested 25 percent each in A and B and 50 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.)
b. If the expected T-bill rate is 4.30 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 3.90 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.)
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