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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .30 -10 % 14 % Boom .70 21 5

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .30 -10 % 14 %
Boom .70 21 5

Calculate the expected return on a portfolio of 45 percent Roll and 55 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.)

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

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