Question: MC algo 13-11 Expected Return There is 6 percent probability of recession, 19 percent probability of a poor economy, 49 percent probability of a normal

MC algo 13-11 Expected Return

There is 6 percent probability of recession, 19 percent probability of a poor economy, 49 percent probability of a normal economy, and 26 percent probability of a boom. A stock has returns of 20.6 percent, 4.2 percent, 12 percent and 27.7 percent in these states of the economy, respectively. What is the stock's expected return?

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