On a calculator

7. Portfolio Returns and Deviations. Consider the following information on a portfolio of three stocks: State of Probability of Stock A Stock B Stock C Economy State of Economy Rate of Return Rate of Return Rate of Return Boom 0.20 0.04 0.20 0.60 Normal 0.60 0.08 0.10 0.20 Bust 0.20 0.12 -0.13 -0.40 a. If your portfolio is invested 30% each in A and B and 40% in C, what is the portfolio's expected return? The variance? The standard deviation? If the expected T-bill rate is 4.25%, what is the expected risk premium on the portfolio? b