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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.20 13 % 17 % Boom 0.80 24 6

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust 0.20 13 % 17 %
Boom 0.80 24 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
State of Economy Probability of State of Economy Return if State Occurs Product Return if State Occurs Product
Bust 0.20 (13) % % 17 % %
Boom 0.80 24 % % 6 % %
E(R)= 16.60 % E(R)=s 8.20 %

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