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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .30 18 % 18 % Boom .70 17 5

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust .30 18 % 18 %
Boom .70 17 5

Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal places.)

ROLL:

state of economy prob. of state of economy return if states occurs product
bust .30 -18.00%

_____%

boom .70 17% ______%
E(R)= 6.50%

ROSS

State of economy prob. of state of economy return if state occurs product
bust .30 18% ____%
boom .70 5% ____%
E(R)= 8.9%

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