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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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