Consider the following information on three stocks:

Rate of Return If State Occurs | ||||||||||||

State of Economy | Probability of State of Economy |
Stock A | Stock B | Stock C | ||||||||

Boom | .25 | .22 | .34 | .56 | ||||||||

Normal | .48 | .19 | .17 | .15 | ||||||||

Bust | .27 | .03 | -.35 | -.44 | ||||||||

**a-1** If your portfolio is invested 45 percent each in A and B and 10 percent in C, what is the portfolio expected return? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Portfolio expected return %**a-2** What is the variance? **(Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)**

Variance**a-3** What is the standard deviation? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Standard deviation %**b.** If the expected T-bill rate is 3.90 percent, what is the expected risk premium on the portfolio? **(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)**

Expected risk premium %**c-1** If the expected inflation rate is 3.50 percent, what are the approximate and exact expected real returns on the portfolio? **(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)**

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 your answers as a percent rounded to 2 decimal places, e.g., 32.16.)**

Approximate expected real risk premium | % |

Exact expected real risk premium | % |