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Probability State of of State of Economy Bust Boom State of Economy Economy 0.40 0.60 Bust Boom Calculate the expected return on a portfolio of
Probability State of of State of Economy Bust Boom State of Economy Economy 0.40 0.60 Bust Boom Calculate the expected return on a portfolio of 55 percent Roll and 45 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 -17% 28% 0.40 0.60 Ross 18% 7% X Answer is complete but not entirely correct. Portfolio Return if State Occurs 0.04 X % 11.40 X % E(Rp)= Product 5.50 X % 5.13 X % % 10.63
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