21.

Candy and More stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?

State of Economy	Probabilty of State of Economy	Rate of Return
Recession	0.2	0.04
Normal	0.6	0.09
Boom	0.35	0.12

	a.	7.89 percent
	b.	8.56 percent
	c.	9.43 percent
	d.	9.90 percent
	e.	10.40 percent