Problem 13-23 Portfolio Returns and Deviations (LCM, 2) Consider the following information about three stocks: State of Probability of State Rate of Return if State Occurs Ecomty of Economyr Stock A Stock B Stock C Boom 0.28 0.34 8.46 8.58 Normal 8.48 6.25 8.23 8.28 Bust 0.48 0.83 8.25 8.42 a1. If your portfolio is invested 35% each in Aand B and 30% 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 9.60 o '36 a2. What is the variance? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Variance 006504120 0 a3. What is the standard deviation? [Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places} Standard deviation 25.50 0% b. If the expected Tpill rate is 4.70%, 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 0 96 c1. If the expected inflation rate is 2.70%, 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 5-93 o % Exact expected real return 5.?2 o % | iii-ii Wh'ai arethe bb'rbifrh i and ataa'gserd E f Eik'pir'e'rh it] 61336:} 'th'ibifrnbtid hhi'r'ddrici iiinihi'l'uih'. """ I Enter the answers as a percent rounded to 2 decimal places.) Approximate expected real risk premium 2-98 o 3; Exact expected real risk premium 4-??? o 33