Problem 11-4 Expected Returns (LO1, CFA1)

		Security Returns if State Occurs
State of Economy	Probability of State of Economy	Roll		Ross
Bust	.50	14	%	14	%
Boom	.50	31		7

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.)

		Roll					Ross
State of Economy	Probability of State of Economy	Return if State Occurs		Product			Return if State Occurs		Product
Bust	.50	-14.00	%		%		14	%		%
Boom	.50	31	%		%		7	%		%
		E(R) =		8.50	%		E(R) =		10.50	%