State of Economy Bust Boom State of Economy Probability of State of Economy 0.50 0.50 Bust Boom Calculate the expected return on a portfolio of 35 percent Roll and 65 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 Security Returns if State Occurs. 0.50 0.50 Roll -13% 31 Portfolio Return if State Occurs Ross 14% 7 % % E(RP)= Product % %
State of Economy Bust Boom State of Economy Probability of State of Economy 0.50 0.50 Bust Boom Calculate the expected return on a portfolio of 35 percent Roll and 65 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 Security Returns if State Occurs. 0.50 0.50 Roll -13% 31 Portfolio Return if State Occurs Ross 14% 7 % % E(RP)= 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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