(i) Describe and interpret the assumptions related to the problem.

(ii) Apply the appropriate mathematical model to solve the problem.

(iii) Calculate the correct solution to the problem.

Analysts predict that over the next year, Thete, Inc.s common stock has a 30% chance of returning 10%, a 45% chance of returning 18%, and a 25% chance of returning 24%. What is the expected rate of return on Thete, Inc.s common stock? Submit your answer as a percentage and round to two decimal places.