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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .20 -19 % 20 % Boom .80 30 7

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .20 -19 % 20 %
Boom .80 30 7

Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: (Round your answers to 4 decimal places. Negative answers should be indicated by a minus sign. 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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