( You are considering to invest in three stocks listed in the Bursa Malaysia. The information about three stocks is given as below: State of Probability of Rate of Return if State Occurs Economy of Stock M Stock N Stock O state economy Boom 0.32 18% 23% Normal 0.41 14% 10% Bust 0.22 2% -10% -40% If your portfolio is invested 20 percent in stock M and 40 percent each in stock N and stock O, compute the following. (i) What is the portfolio expected return? (ii) What is the standard deviation of the constructed portfolio? (iii) If the expected T-bill rate is 2.50 percent, what is the expected risk premium on the portfolio? 58% 6% (c) Stock X offers a market return of 22% with a systematic risk of 1.8 and stock Y offers a market return of 20.44% with a systematic risk of 1.6. If these stocks are correctly priced, what would the risk-free rate have to be?