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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .30 17 % 18 % Boom .70 17 5
Security Returns if State Occurs | |||||
State of Economy | Probability of State of Economy | Roll | Ross | ||
Bust | .30 | 17 | % | 18 | % |
Boom | .70 | 17 | 5 |
Calculate the expected return on a portfolio of 70 percent Roll and 30 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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