Probability State of of State of Economy Economy 0.50 0.50 Bust Boom State of Economy Bust Boom Calculate the expected return on a portfolio of 65 percent Roll and 35 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 of State of Economy Security Returns if State Occurs 0.50 0.50 Roll -14% 25% Ross 18% 6% Portfolio Return if State Occurs % % E(Rp)= Product % % %

Calculate the expected return on a portfolio of 65 percent Roll and 35 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