# write my assignment 19098

Consider the following information about three stocks:

Rate of Return if State Occurs  State ofProbability of  EconomyState of EconomyStock AStock BStock C  Boom .25  .30  .42  .54   Normal .45  .12  .10  .08   Bust .30  .03 -.24 -.44

a1.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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Portfolio expected return %

a2.What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)

Variance

a3.What is the standard deviation? (Do not round intermediate calculations and 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 3.20 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.)

Expected risk premium %

c1.If the expected inflation rate is 2.80 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.)

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 and 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 %