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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.20 19 % 20 % Boom 0.80 30 7
Security Returns if State Occurs | |||||||||||
State of Economy | Probability of State of Economy | Roll | Ross | ||||||||
Bust | 0.20 | 19 | % | 20 | % | ||||||
Boom | 0.80 | 30 | 7 | ||||||||
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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