Question: Question 3 (2.5 points) PL Lumber stock is expected to return 22 percent in a booming economy, 15 percent in a normal economy, and lose

Question 3 (2.5 points) PL Lumber stock is expected to return 22 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a recession. The probabilities of an economic boom, normal state, or recession are 15 percent, 80 percent, and 5 percent, respectively. What is the expected rate of return on this stock? 12.80 percent 14.60 percent 15.20 percent 15.60 percent

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