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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .30 10 % 14 % Boom .70 21 5

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust .30 10 % 14 %
Boom .70 21 5

Calculate the expected return on a portfolio of 45 percent Roll and 55 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

State of Economy Probability of State of Economy Portfolio Return if State Occurs Product
Bust .30 % %
Boom .70 % %
E(Rp)= 9.50 %

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