Problem 13-23 Portfolio Returns and Deviations (LO1, 2) Consider the following information about three stocks, State of Economy Boom Normal Bust Probability of State of Economy 8.25 0.44 2.31 Rate of Return State Occurs Stock A Stock B Stock 0.36 0.48 0.52 0.20 0.15 2.12 0.04 0.26 -0.44 - 1. If your portfolio is invested 40% each in A and B and 20% 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 12.76% .-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance 0.05355504 0-3. What is the standard deviation? (Do not round Intermediate calculations. Enter the answer as a percent etting tooted b. If the expected T-bill rate is 4.80%, 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 7.96 % c-1. If the expected inflation rate is 2.80%, what are the approximate and exact expected real returns on the portfolio? (Do not round Intermediate calculations. Enter the answers as a percen: sunded to 2 decimal places.) 9.96 Approximate expected real return Exact expected real return 9.09 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.) 5.16 Approximate expected real risk premium Exact expected ceal risk premium 4.19 Activate Windows