Question: 2 . PL Lumber stock is expected to return 2 0 % in a booming economy, return 1 0 % in a normal economy, and

2. PL Lumber stock is expected to return 20% in a booming economy, return 10% in a normal economy, and lose 2% in a recession. The probabilities of an economic boom, normal state, or recession are 7%,89%, and 4%, respectively. The expected rate of return on this stock is A)14.84%B)12.23%C)13.51%D)10.22%

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