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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.60 17 % 13 % Boom 0.40 20 5
Security Returns if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Roll | Ross | ||||||||
Bust | 0.60 | 17 | % | 13 | % | ||||||
Boom | 0.40 | 20 | 5 | ||||||||
Calculate the expected returns for Roll and Ross by filling in the following table:
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