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Expected return. Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year in

Expected return. Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year in the following table: ?3. The probability of a boom economy is 25%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 24%, and the probability of a recession is 6%. Estimate the expected returns on the following individual investments for the coming year.
What is the expected return of the stock investment?
%(Round to two decimal places.)
What is the expected return of the corporate bond investment?
%(Round to two decimal places.)
What is the expected return of the government bond investment?
%(Round to two decimal places.)
3: Data Table
(Click on the following icon in order to copy its contents into a spreadsheet.)
\table[[Investment,Forecasted Returns for Dach Economy,],[Boom,\table[[Stable],[Growth]],Stagnant,Recession],[Stock,29%,11%,3%,-14%
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