State of of State of Economy Economy 0.40 0.60 Bust Boom Probability Security Returns if State Occurs State of Economy Bust Boom Calculate the expected return on a portfolio of 55 percent Roll and 45 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. Roll -17% 28% Probability of State of Economy Ross 18% 7% Answer is complete but not entirely correct. 0.40 0.60 Portfolio Return if State Occurs 0.04 % 11.40 % E(Rp)= Product de de 5.50% 5.13 % 10.63 %
State of of State of Economy Economy 0.40 0.60 Bust Boom Probability Security Returns if State Occurs State of Economy Bust Boom Calculate the expected return on a portfolio of 55 percent Roll and 45 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. Roll -17% 28% Probability of State of Economy Ross 18% 7% Answer is complete but not entirely correct. 0.40 0.60 Portfolio Return if State Occurs 0.04 % 11.40 % E(Rp)= Product de de 5.50% 5.13 % 10.63 %
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
0.40
0.60
Bust
Boom
State of
Economy
Bust
Boom
Calculate the expected return on a portfolio of 55 percent Roll and 45 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.
Security Returns if
State Occurs
Probability
of State of
Economy
Roll
-17%
28%
0.40
0.60
Ross
18%
7%
Answer is complete but not entirely correct.
Portfolio Return if
State Occurs
0.04 %
11.40
%
E(Rp)=
Product
5.50 X %
5.13
%
10.63
%
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