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17. value: 2.00 points Problem 11-25 Portfolio Returns and Deviations [LO 2] Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust Required: Probability of State of Economy .12 .54 .34 Stock A Rate of Return .03 11 .17 Stock B Rate of Return .33 .23 -.22 Stock C Rate of Return .49 .21 -.36 (a) If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places (e.g., 32.16161) and input your other answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return Variance Standard deviation (b) If the expected T-bill rate is 4.3 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected risk premium Hints References eBook & Resources