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Security Returns if State Occurs State of Economy Probability of State of Economy Bust Boom 30 70 Roll -16% Ross 16% 15 6 Calculate

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Security Returns if State Occurs State of Economy Probability of State of Economy Bust Boom 30 70 Roll -16% Ross 16% 15 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.) State of Economy Probability of State of Economy .30 Bust Boom 70 Roll Return if State Occurs Ross Product Return if State Occurs -16.00 % 16% 15 % % 6% E(R)= 5.70 % E(R)= Product % % 9.00 %

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