Question: A stock is expected to return 1 1 % in a normal economy, 1 9 % if the economy booms, and lose 8 % if

A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessionary period. Economists predict a 45% chance of a normal economy, a 45% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock?
17.20%
12.70%
12.07%
10.27%
 A stock is expected to return 11% in a normal economy,

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