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Consider the following information about three stocks: a-1. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round intermediate calcus and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.80 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. If the expected inflation rate is 3.40 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) \begin{tabular}{|l|r|r|} \hline a-1. Portfolio expected return & 6.28 & % \\ \hline a-2. Variance & 20.94 & % \\ \hline a-3. Standard deviation & 2.48 & % \\ \hline b. Expected risk premium & & % \\ \hline c-1. Approximate expected real return & % \\ \hline c-1. Exact expected real return & & % \\ \hline c-2. Approximate expected real risk premium & & % \\ \hline c-2. Exact expected real risk premium & & % \\ \hline \end{tabular}

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