Security Returns If State Occurs
State of	Probability of
Economy	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: (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

State of Economy	Probability of State of Economy	Portfolio Return If State Occurs		Product
Bust	.30		%		%
Boom	.70		%		%
			E(RP) =		%

References

eBook & Resources

WorksheetDifficulty: 1 EasySection: 11.2 Portfolios

Problem 11-6Learning Objective: 11-02 How to calculate expected returns and variances for a portfolio.

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