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After studying the economy you forecast that there is a 70% chance of a good economy next year and a 30% chance of a poor

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After studying the economy you forecast that there is a 70% chance of a good economy next year and a 30% chance of a poor economy. If the economy is good you estimate that a stock you have been following would have a 15% return. Likewise, if the economy poor, you estimate a-7% return for that same stock. The risk-free rate is 4.5%. What is the expected return for this stock? (Answer to the nearest tenth of a percent, but do not use a percent sign) Risk-Free Rate = 4 5

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