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Popular Finger Foods stock is expected to return 20 percent in a booming economy, 14 percent in a normal economy, and 5 percent in a

Popular Finger Foods stock is expected to return 20 percent in a booming economy, 14 percent in a normal economy, and 5 percent in a recession. The probabilities of an economic boom, normal state, or recession are 8 percent, 87 percent, and 5 percent, respectively. What is the expected rate of return on this stock?

  • 13.53 percent

  • 12.92 percent

  • 13.20 percent

  • 14.16 percent

  • 13.95 percent

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