Question: A project's expected return is 20% which represents a 35% return in boom, a 15% return in a normal, and a 5% return in stagnant

A project's expected return is 20% which represents a 35% return in boom, a 15% return in a normal, and a 5% return in stagnant economy. What is the probability of a boom if these are the only three economic states and the probability of a stagnant economy is 22%

A) 43.20%

B) 36.00 %

C) 28.80 %

D) 21.60%

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