Question: Please help!! Problem 11-25 Portfolio Returns and Deviations LO 2] Consider the following information on a portfolio of three stocks: State of Probability of Stock

Please help!!

Please help!! Problem 11-25 Portfolio Returns and Deviations LO 2] Consider the

Problem 11-25 Portfolio Returns and Deviations LO 2] Consider the following information on a portfolio of three stocks: State of Probability of Stock A Stock B Economy State of Economy Rate of Retum Rate of Return Boom .14 .07 .32 Normal .55 .15 .17 Bust 31 .16 -16 Stock C Rate of Return .55 .25 -35 Required: (a) If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected retum, 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 retum Variance Standard deviation (b) If the expected T-bill rate is 4 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 Hint #1 Check my work H Type here to search i . 4 10:34 PM 4/26/2021

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