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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust Boom .30 .70 -15% 15 16% 6 Calculate the
Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust Boom .30 .70 -15% 15 16% 6 Calculate the expected returns for Roll and Ross by filling in the following table (verify your answer by expressing returns as percentages as well as decimals): (Negative amounts should be indicated by a minus sign. Round your Economy and E(R) answer to 2 decimal and Product answer to 4 decimal places. Omit the "%" sign in your response.) Roll Ross State of Economy Probability of State of Economy Return If State Occurs Return if State Occurs Product Product Bust 1% 1% Boom % E(R) = E(R)
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