der the following information on a portfolio of three stocks: State of 15 .54 .31 Probability...
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der the following information on a portfolio of three stocks: State of 15 .54 .31 Probability of Stock A Rate of Stock B Rate of Economy State of Economy Boom Normal Bust Return .68 Return Stock C Rate of Return .16 .33 .28 44 .26 .17 -.27 -.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? 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. b. 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. a. Expected return Variance Standard deviation b. Expected risk premium 96 96 der the following information on a portfolio of three stocks: State of 15 .54 .31 Probability of Stock A Rate of Stock B Rate of Economy State of Economy Boom Normal Bust Return .68 Return Stock C Rate of Return .16 .33 .28 44 .26 .17 -.27 -.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? 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. b. 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. a. Expected return Variance Standard deviation b. Expected risk premium 96 96
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