Please solve the following problems using the long method with formulas. (Do not solve using the calculator functions for Data and Stat). Please show all calculations and not just the answer.

7. You have invested $4,000 in stock A, $4,000 in stock B, and $2,000 in stock C. The risk free rate of return is 4.03% (expected return on T-Bills). Given the following information, calculate the return on this portfolio and then calculate the portfolio risk premium.

State of Economy	Probability	Rate of Return
		Stock A (%)	Stock B (%)	Stock C (%)
Boom	5%	7	15	28
Normal	80%	9	12	17
Recession	15%	10	2	-35