Probability State of of State of Economy Bust Boom State of Economy Economy 0.20 0.80 Bust Boom Calculate the expected return on a portfolio of 60 percent Roll and 40 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. Security Returns if State Occurs Probability of State of Economy Roll -13% 24% 0.20 0.80 Ross 17% 6% Answer is complete but not entirely correct. Portfolio Return if State Occurs 16.60 X % 8.20 % E(Rp)= Product 16.60 X % 8.20 X % 13.24 %

Calculate the expected return on a portfolio of 60 percent Roll and 40 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