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 Return 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 return, 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 return 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 %