Question: calculate the expected returns for roll and ross. Security Returns if State Occurs PIO State of Economy Bust Boom Probability of State of Economy 0.30

calculate the expected returns for roll and ross.calculate the expected returns for roll and ross. Security Returns if State

Security Returns if State Occurs PIO State of Economy Bust Boom Probability of State of Economy 0.30 0.70 Roll -16% 15 Ross 16% 6 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.) Roll Ross Probability of State of Economy Return if State Occurs Product Return if State Occurs Product State of Economy Bust 0.30 Boom 0.70 (16) % 15% E(R)= % 16 % 6% E(R)=s 5.70 9.00 %

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