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Security Returns if State Occurs Probability of State of Economy Roll Ross State of Economy .50 -12% 18% Bust Boom .50 25 6 Calculate the

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Security Returns if State Occurs Probability of State of Economy Roll Ross State of Economy .50 -12% 18% Bust Boom .50 25 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.) Roll Ross Probability of State of Return if State Occurs Product Return if State Occurs Product Economy State of Economy .50 -12.00 % .50 25 % E(R) = Bust Boom % % 6.50 % 18 % 6% E(R) = % % 12.00 %

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