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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.30 15 % 16 % Boom 0.70 15 6

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust 0.30 15 % 16 %
Boom 0.70 15 6

Calculate the expected return on a portfolio of 60 percent Roll and 40 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 0.30 % %
Boom 0.70 % %
E(RP)= %

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