Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 20%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 15%. Estimate the expected return on the following individual investments for the comingyear.

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Forecasted Returns for Each E conomy INVESTMENT Stock Corporate Bond Govemment Bond Stable Growth Stagnant 490 5% Recession 12% 3% Boom 25% 12% 0 6%