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Probability Security Returns if State of of State of State Occurs Economy Economy Roll Ross Bust Boom 0.30 0.70 -10% 21% 14% 5% Calculate

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Probability Security Returns if State of of State of State Occurs Economy Economy Roll Ross Bust Boom 0.30 0.70 -10% 21% 14% 5% Calculate the expected return on a portfolio of 45 percent Roll and 55 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 0.30 % % Boom 0.70 % % E(Rp)= : %

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