State of Economy Bust Boom State of Economy Probability of State of Bust Boom Economy 0.30 0.70 Probability of State of Economy Security Returns if State Occurs Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: Note: 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. 0.30 0.70 Roll -17% 17% Portfolio Return if State Occurs Ross 18% % % EUR) 5% Product
State of Economy Bust Boom State of Economy Probability of State of Bust Boom Economy 0.30 0.70 Probability of State of Economy Security Returns if State Occurs Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: Note: 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. 0.30 0.70 Roll -17% 17% Portfolio Return if State Occurs Ross 18% % % EUR) 5% Product
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Probability.
State of of State of
Economy Economy
0.30
0.70
Bust
Boom
State of
Economy
Bust
Boom
Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table:
Note: 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
Security Returns if
State Occurs
0.30
0.70
Roll
-17%
17%
Portfolio Return if
State Occurs
Ross
18%
5%
%
%
E(Rp)
Product
%
96
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