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The expected rate of return and variance of the market portfolio (M) are 0.071 and 0.0081 , respectively. -And the inflation rate and risk-free rate

image text in transcribed The expected rate of return and variance of the market portfolio (M) are 0.071 and 0.0081 , respectively. -And the inflation rate and risk-free rate are, respectively, 3.5% and 4.5%. (a) Compute the expected rate of return, variance, and REAL risk premium of the 3-stock-portfolio ( P) that is composed of 55% in A, in B, and 65% in C. . T (b) Assume now that you only have $200,000 for constructing the-3-stock-portfolio (P). in part-(a), the transaction associated with your position in stock C, which is pricedat $80 per share, involves the of shares of-stock.C

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