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Accounting Homework Help

Consider the following information about three stocks: Rate ofReturn If State Occurs State of Probability of Economy State ofEconomy Stock A Stock B Stock C Boom .20 .24 .36 .58 Normal .50 .20.18 .16 Bust .30 .04 −.36 −.45 a-1 If your portfolio is invested 40percent each in A and B and 20 percent in C, what is the portfolioexpected return? (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)Portfolio expected return % a-2 What is the variance? (Do not roundintermediate calculations and round your answer to 5 decimalplaces, e.g., 32.16161.) Variance a-3 What is the standarddeviation? (Do not round intermediate calculations. Enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)Standard deviation % b. If the expected T-bill rate is 4.00percent, what is the expected risk premium on the portfolio? (Donot round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.) Expected risk premium %c-1 If the expected inflation rate is 3.60 percent, what are theapproximate and exact expected real returns on the portfolio? (Donot round intermediate calculations. Enter your answers as apercent rounded to 2 decimal places, e.g., 32.16.) Approximateexpected real return % Exact expected real return % c-2 What arethe approximate and exact expected real risk premiums on theportfolio? (Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places, e.g., 32.16.)Approximate expected real risk premium % Exact expected real riskpremium %