Problem 11-6 Portfolio Expected Returns (LO2, CFA3)

		Security Returns if State Occurs
State of Economy	Probability of State of Economy	Roll		Ross
Bust	0.30	15	%	16	%
Boom	0.70	15		6

Calculate the expected return on a portfolio of 60 percent Roll and 40 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.)

State of Economy	Probability of State of Economy	Portfolio Return if State Occurs		Product
Bust	0.30		%		%
Boom	0.70		%		%
		E(RP)=			%