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State of Economy Bust Boom Probability of State of Economy 40 60 15 Bust Boom Security Returns If State Occurs 40 Probability of Return If
State of Economy Bust Boom Probability of State of Economy 40 60 15 Bust Boom Security Returns If State Occurs 40 Probability of Return If State of State of State Economy Economy Occurs 60 Roll 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.) -17% 28 Roll E(R)= -17% 28% Ross Product 18% 7 -6.8 16.8 10% Ross Return if State Occurs 18% 7% E(R)= = Product 7.2 4.2 11.40%
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