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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .40 -17 % 18 % Boom .60 28 7

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .40 -17 % 18 %
Boom .60 28 7

Calculate the expected return on a portfolio of 55 percent Roll and 45 percent Ross by filling in the following table: (Round your answers to 4 decimal places. Negative answers should be indicated by a minus sign. Omit the "%" sign in your response.)

State of Economy Probability of State of Economy Portfolio Return If State Occurs Product
Bust .40
Boom .60
E(RP) = %

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