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  1. business
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  3. consider the following information on a portfolio

Consider the following information on a portfolio of three stocks: State of Economy Probabllity of...

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Consider the following information on a portfolio of three stocks: State of Economy Probabllity of State of Economy .12 52 136 Boom Normal Bust - Stock A Stock B Stock C Rate of Return Rate of Return Rate of Return .05 35 57 13 15 .23 .19 14 -.38 a. If your portfolio is invested 42 percent each in A and B and 16 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., 32.16161. Enter your other answers as a percent rounded to 2'decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.9 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.) % a. Expected return Variance Standard deviation b. Expected risk premium % %

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