Expected return.

Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 13%, the probability of a stable growth economy is 16%, the probability of a stagnant economy is 45%, and the probability of a recession is 26%.

Estimate the expected returns on the following individual investments for the coming year.

Investment	Forecasted Returns for Each Economy
	Boom		Stable Growth		Stagnant		Recession
Stock	28%		11%		6%		10%
Corporate bond	9%		7%		6%		4%
Government bond	8%		6%		5%		3%

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

What is the expected return of the stock investment?

%

(Round to two decimal places.)