Question: 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

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% b. 15.47% C. 12.23% d. 13.51%

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