6 Security Returns if State Occurs State of Economy Bust Boom Probability of State of...
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6 Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy e.se e.se Roll -12% Ross 18% 6 25 2 Calculate the expected returns for Roll and Ross by filling in the following table. (A negative value should be indicated sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and value of the return. Input all your answers as a percent rounded to 2 decimal places.) Roll Ross State of Economy Probability of State of Economy Return if State Occurs Product Return if State Occurs Product 0.50 Bust (12) % % 18 % % % 0.50 % Boom 25 % 6% E(R)=S E(R)= 6.50 % 12.00 %
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