The document provides information to calculate the expected return, variance, standard deviation, expected risk premium, expected real returns, and expected real risk premiums for a portfolio invested in three stocks. It does not provide the expected returns for the individual stocks or the inflation rate, but asks the reader to calculate several portfolio metrics based on a 40-20-40 investment across stocks A, B, and C, and an expected inflation rate of 3.30%. The document instructs the reader to show their work and provide answers in a specific format.

1. 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- 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
5. your answer as a percent roundea to decimai piaces, e.g., SL.7b.) 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.)