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Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.60 0.40 Roll -11% 26 ROSS 19% 6 Calculate the

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Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.60 0.40 Roll -11% 26 ROSS 19% 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 Ros State of Economy Probability of State of Economy Return if State Occurs Product Return if State Occurs Bust 0.60 19 % Boom 0.40 (11) % 26% E(R)= 6 % E(R)=s 3.80 %

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