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

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Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy .50 .50 Roll -14% 31 Ross 14% 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% % % 8.50 % E(R) = E(R) = 10.50 %

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