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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .20 -12 % 13 % Boom .80 30 6

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .20 -12 % 13 %
Boom .80 30 6

Calculate the expected return on a portfolio of 40 percent Roll and 60 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 .20 % %
Boom .80 % %
E(RP) = %

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