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Probability Security Returns if State of of State of State Occurs Economy Economy Roll Ross Bust Boom 0.20 0.80 -12% 30% 13% 6% Calculate

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Probability Security Returns if State of of State of State Occurs Economy Economy Roll Ross Bust Boom 0.20 0.80 -12% 30% 13% 6% Calculate the expected return on a portfolio of 40 percent Roll and 60 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Probability State of Economy Portfolio Return if of State of Economy Product State Occurs Bust 0.20 % % Boom 0.80 % % E(Rp)= %

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