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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.20 13 % 17 % Boom 0.80 24 6
Security Returns if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Roll | Ross | ||||||||
Bust | 0.20 | 13 | % | 17 | % | ||||||
Boom | 0.80 | 24 | 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.)
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