Extracted text: Consider the following information about three stocks: Rate of Return If State Occurs Probability of State of Economy .25 State of Economy Stock A Stock B Stock C Вoom .13 .29 .60 Normal .60 .08 .11 .13 Bust .15 .02 -18 -.45 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- What is the variance? (Do not round intermediate calculations and round 2. your answer to 5 decimal places, e.g., .16161.) a- What is the standard deviation? (Do not round intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.70 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 3.30 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- What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) а-1.If Answer is not complete. a-1. Portfolio expected return 11.01 % a-2. Variance 0.01841 a-3. Standard deviation 13.57 % b. Expected risk premium 7.31 % c-1. Approximate expected real return 7.71 c-1. Exact expected real return 7.46 c-2. Approximate expected real risk premium % c-2. Exact expected real risk premium %
Extracted text: Asset W has an expected return of 8.8 percent and a beta of .9O. If the risk-free rate is 2.6 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Do not round intermediate calculations. Enter your expected returns as a percent rounded to 2 decimal places, e.g., 32.16, and your beta answers to 3 decimal places, e.g., 32.161.) Answer is complete and correct. Percentage of Portfolio in Asset W Portfolio Expected Portfolio Return Beta % 2.60 % 25 4.15 % 0.225 50 5.70 % 0.450 75 7.25 % 0.680 100 8.80 % 0.900 125 10.35 % 1.130 150 11.90 % 1.350 you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) If X Answer is not complete. Slope of the line