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State of economy Probability of state economy Stock A (rate of return) - Stock B - Stock C

Boom .15 .08 .33 .44

Normal .54 .16 .28 .26

Bust .31 .17 -.27 -.36

If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolios expected return, the variance, and the standard deviation? Note: Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.

If the expected T-bill rate is 4.55 percent, what is the expected risk premium on the portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.+

State of economy Probability of state economy Stock A rate of return - Stock B Rate of return - Stock C rate of return

Boom .15 .08 .33 .44

Normal .54 .16 .28 .26

Bust .31 .17 -.27 -.36

If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolios expected return, the variance, and the standard deviation? Note: Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.

If the expected T-bill rate is 4.55 percent, what is the expected risk premium on the portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.