Problem 13-23 Portfolio Returns and Deviations (L01, 2). Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy 0.20 0.55 0.25 Rate of Return if State Occurs Stock A Stock B Stock C 0.38 0.50 0.50 0.16 0.14 0.12 0.00 -0.30 -0.50 a-1. If your portfolio is invested 30% each in A and B and 40% 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 1% a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance rounded to 2 decimal Save & Exit CE 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 3.70%, 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 2.60%, 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.) % Approximate expected real return Exact expected real return c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) % % Approximate expected real risk premium Exact expected real risk premium