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Correct = upvote. Thanks. Security Returns if State Occurs State of Economy Bust Probability of State of Economy .60 .40 Ross Roll -15% 32 15%
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Security Returns if State Occurs State of Economy Bust Probability of State of Economy .60 .40 Ross Roll -15% 32 15% 5 Boom Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal places.) Roll Ross State of Economy Return if State Occurs Product Probability of State of Economy .60 Return if State Occurs Product Bust % Boom 40 -15.00% 32 % E(R) = % % 3.80 % 15 % 5% E(R) = % 11.00 %Step by Step Solution
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