State of Economy Bust Boom Probability of State of Economy .20 .80 State of Probability of State of Economy Economy Bust Boom 20 80 alculate the expected return on a portfolio of 60 percent Roll and 40 percent Ross by filling in the following table: (A negative value hould be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 ecimal places.) Portfolio Return if State Occurs ER Security Returns if State Occurs % % Roll -13% 24 Ross 17% Product % % %

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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State of
Economy
Bust
Boon
State of
Economy
Bust
Boom
Probability of
State of Economy
.20
.80
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.)
Probability
of State of
Economy
20
.80
Portfolio Return if
State Occurs
%
%
Security Returns if
State Occurs
E(R)
Roll
-134
24
Ross
17%
6
Product
%
%
%
Transcribed Image Text:State of Economy Bust Boon State of Economy Bust Boom Probability of State of Economy .20 .80 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.) Probability of State of Economy 20 .80 Portfolio Return if State Occurs % % Security Returns if State Occurs E(R) Roll -134 24 Ross 17% 6 Product % % %
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