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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .30 -8 % 19 % Boom .70 29 7

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .30 -8 % 19 %
Boom .70 29 7

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 values should be indicated by a minus sign. Do not round intermediate calculations. Round your E(R) answers to 2 decimal places and your Product answers to 4 decimal places. Omit the "%" sign in your response.)

Roll Ross
State of Economy Probability of State of Economy Return If State Occurs Product Return if State Occurs Product
Bust .30 % %
Boom .70 % %
E(R) = % E(R) = %

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