Please solve the following problems using the long method with formulas. (Do not solve using the calculator functions for Data and Stat). Please show all calculations and not just the answer.

1. Considering the uncertainty of the future, there is a 5% chance that economy will be in boom; 92% chance that economy will be normal and the remaining possibility of economy to be in recession. If you buy XYZ company stock, you are expected to earn 22% return, if economy is in boon; or you will earn 15% return if economy is normal. However, if economy is in recession, your stock will make a loss of 2 What is the expected rate of return on this stock?