Brandywine Fine Wines stock is expected to earn 10 percent in a normal economy, 17 percent in a strong economy, 28 percent in a booming economy, and lose 12 percent in a recession. The probability of a recession is 15 percent while the probability of a normal economy is 50 percent, the probability of a strong economy is 30 percent, and the probability of a booming economy is 5 percent. What is the expected rate of return on this stock?

Brandywine Fine Wines stock is expected to earn 10 percent in a normal economy, 17 percent in a strong economy, 28 percent in a booming economy, and lose 12 percent in a recession. The probability of a recession is 15 percent while the probability of a normal economy is 50 percent, the probablity of a strong economy is 30 percent, and the probability of a booming economy is 5 percent. What is the expected rate of return on this stock? O A. 11.72% OB. 13.11% O c. 10.42% OD. 12.45% O E. 9.70%