Conider the following information about three tock:
State of Economy Probability of State of Economy Rate of Return if State Occur
Stock A Stock B Stock C
Boom. 20. 24. 36. 58
Normal. 50. 20. 18. 16
But. 30. 04 −. 36 −. 45
If the expected inflation rate i 3. 60 percent, what are the approximate and exact expected real return on the portfolio? (Do not round intermediate calculation and enter your anwer a a percent rounded to 2 decimal place, e. G. , 32. 16. )c-2. What are the approximate and exact expected real rik premium on the portfolio? (Do not round intermediate calculation and enter your anwer a a percent rounded to 2 decimal place, e. G. , 32. 16. )
