1. Consider an economy with four possible economic states: Boom, Normal, Slow Growth, and Recession which have a 0.2, 0.3, 0.4, and 0.1 probability of occurring, respectively. You are considering a stock which is expected to return 12%, 9%, 4%, and 2%, respectively, in each of those states. What is the expected return on the stock?

   		5.7%
   		6.2%
   		6.9%
   		7.3%