Question: Consider the following information about three stocks: table [ [ , table [ [ Probability of State ] , [ State of Economy

Consider the following information about three stocks:
\table[[,\table[[Probability of State],[State of Economy],[of Economy]],Rate of Return if State Occurs],[Boom,.30,Stock B,Stock C],[Normal,.45,.12,.42,.54],[Bust,.30,.03,-.24,.08],[,,,,]]
a-1. If your portfolio is invested 45 percent each in A and B and 10 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 3.20 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 2.80 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.)
\table[[a-1. Portfolio expected return,,%
 Consider the following information about three stocks: \table[[,\table[[Probability of State],[State of

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