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Problem 11-4 Expected Returns (LO1, CFA1) Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .30 14 %
Problem 11-4 Expected Returns (LO1, CFA1)
Security Returns if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Roll | Ross | ||||||||
Bust | .30 | 14 | % | 16 | % | ||||||
Boom | .70 | 23 | 6 | ||||||||
Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal places.)
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