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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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