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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.40 ?10 % 21 % Boom 0.60 28 8
Security Returns if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Roll | Ross | ||||||||
Bust | 0.40 | ?10 | % | 21 | % | ||||||
Boom | 0.60 | 28 | 8 | ||||||||
Calculate the expected return on a portfolio of 55 percent Roll and 45 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 .40 (Fill in Answer) (Fill in Answer)
Boom .60 (Fill in Answer) (Fill in Answer)
E(RP)= (Fill in Answer)
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