Expected return. HullConsultants, a famous think tank in theMidwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 12

12%, the probability of a stable growth economy is 18

18%, the probability of a stagnant economy is 55

55%, and the probability of a recession is 15

15%. Estimate the expected returns on the following individual investments for the comingyear, LOADING...

.

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

What is the expected return of the stockinvestment?

nothing

Investment

Forecasted Returns for Each Economy

Boom

Stable

Growth

Stagnant

Recession

Stock 20% 13% 3% 11%

Corporate bond 9% 7% 6% 4%

Government bond 8% 6% 5% 3%

% (Round to two decimalplaces.)