Problem 13-23 Portfolio Returns and Deviations (L01, 2) Consider the following information about three stocks: Rate of Return if State Occurs Stock A Stock C State of Economy Boom Normal Probability of State of Economy 0.25 0.50 0.25 0.34 0.14 0.05 Stock B 0.46 0.12 -0.26 0.58 0.10 -0.46 Bust a-1. If your portfolio is invested 20% each in A and B and 60% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Portfolio expected return % a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation % b. If the expected T-bill rate is 3.50%, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium % c-1. If the expected inflation rate is 2.40%, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.)