Question: 4 Problem 11-4 Expected Returns (LO1, CFA1) 1.5 points Security Returns if State Occurs 8 State of Economy Bust Boom Probability of State of Economy

4 Problem 11-4 Expected Returns (LO1, CFA1) 1.5 points Security Returns if State Occurs 8 State of Economy Bust Boom Probability of State of Economy .40 .60 04:12-17 Roll -15% 22 Ross 15% 5 eBook Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal places.) Print Roll Ross State of Economy Return if State Occurs Product Return if State Occurs Product References Probability of State of Economy 40 .60 Bust Boom -15.00 % 22 % E(R) = % % 7.20% 15 % 5 % E(R) = % % % % 9.00 %
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