Problem 11-6

		Security Returns If State Occurs
State of	Probability of
Economy	State of Economy	Roll		Ross
Bust	.40	-16	%	17	%
Boom	.60	16		7

Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table: (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

State of Economy	Probability of State of Economy	Portfolio Return If State Occurs		Product
Bust	.40		%		%
Boom	.60		%		%
			E(RP) =		%