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 11%, the probability of a stable growth economy is19%,the probability of a stagnant economy is 47%, and the probability of a recession is23%.

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	23%		14%		5%		11%
Corporate bond	10%		7%		6%		4%
Government bond	9%		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.)