Expected Returns Calculate the expected returns for Roll and Ross by filling in the following:
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
State of |
Probability of |
Return if State |
Product |
Return if State |
Product |
|
Economy |
State of Economy |
Occurs |
(2) × (3) |
Occurs |
2) × (5) |
|
E(R) = |
E(R) = |