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Consider the following information about three stocks:

  

				Rate of Return If State Occurs
State of	Probability of
Economy	State of Economy			Stock A			Stock B			Stock C
Boom		.20			.28			.40			.56
Normal		.45			.22			.20			.18
Bust		.35			.00			?.20			?.48

  

a-1.	If your portfolio is invested 30 percent each in A and B and 40percent in C, what is the portfolio expected return? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
a-2.	What is the variance? (Do not round intermediatecalculations and round your answer to 5 decimal places, e.g.,.16161.)
a-3.	What is the standard deviation? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b.	If the expected T-bill rate is 4.20 percent, what is theexpected risk premium on the portfolio? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c-1.	If the expected inflation rate is 3.80 percent, what are theapproximate and exact expected real returns on the portfolio?(Do not round intermediate calculations and enter youranswers as a percent rounded to 2 decimal places, e.g.,32.16.)
c-2.	What are the approximate and exact expected real risk premiumson the portfolio?(Do not round intermediate calculationsand enter your answers as a percent rounded to 2 decimal places,e.g., 32.16.)