Question: PL Lumber stock is expected to return 22 % in a booming economy, 15 % in a normal economy, and lose 2% in a recession.

PL Lumber stock is expected to return 22 % in a

PL Lumber stock is expected to return 22 % in a booming economy, 15 % in a normal economy, and lose 2% in a recession. The probabilities of an economic boom, normal state, or recession are 5 %, 92 %, and 3%, respectively. What is the expected rate of return on this stock? A. 14.84 percent B. 14.23 percent C. 14.51 percent D. 15.47 percent

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