Problem 11-4

		Security Returns If State Occurs
State of	Probability of
Economy	State of Economy	Roll		Ross
Bust	.30	-10	%	20	%
Boom	.70	27		7

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 values should be indicated by a minus sign. Do not round intermediate calculations. Round your E(R) answers to 2 decimal places and your Product answers to 4 decimal places. Omit the "%" sign in your response.)

		Roll				Ross
State of Economy	Probability of State of Economy	Return If State Occurs		Product		Return if State Occurs		Product
Bust	.30		%				%
Boom	.70		%				%
		E(R) =			%	E(R) =			%