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State of Economy Probability of State of Economy Portfolio Return if State Occurs Product Bust 0.20 % % Boom 0.80 % % E(RP)= % Security

State of Economy Probability of State of Economy Portfolio Return if State Occurs Product
Bust 0.20 % %
Boom 0.80 % %
E(RP)= %

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust 0.20 19 % 20 %
Boom 0.80 30 7

Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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