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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 283 Weeks Ago, 2 Days Ago |
| Questions Answered: | 27237 |
| Tutorials Posted: | 27372 |
MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
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| Security Returns If State Occurs | |||||
| Â Â State of | Probability of | ||||
|   Economy | State of Economy | Roll    | Ross     | ||
| Â Â Bust | .20 | -13 | % | 17 | % |
|   Boom  | .80 | 24 |  | 6 |  |
Â
|
Calculate the expected returns for Roll and Ross by filling in the following table (verify your answer by expressing returns as percentages as well as decimals): (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your E(R) answers to 2 decimal places and your Product answers to 4 decimal places. Omit the "%" sign in your response.) |
Â
| Â | Â | Roll | Â | Ross | Â | ||||
| Â Â | Â | Â | Â | ||||||
|   State of   Economy | Probability of State of Economy |
Return If State Occurs |
Product |  |    Return if  State Occurs |
Product | Â | ||
| Â Â Bust | .20 | % | Â | % | Â | ||||
| Â Â Boom | .80 | % | Â | % | Â | ||||
| Â Â Â | Â | Â | Â | Â | Â | ||||
| Â | Â | E(R) = Â Â | % | E(R) = Â Â | % | ||||
| Â Â Â | Â | Â | Â | Â |
 |
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