SS 16 State of the Economy Boom Normal Recession O 21.7% Rate of Return on Probability of Stock if State Expected Occurring of the Return Consider the stock performance described above. What is its expected return? O Need more information O 29.7% 0.15 0.53 30.7% Economy Occurs 85.0% 32.0% -25.0%

Consider the stock performance described above. What is its expected return? Need more information 21.7% 29.7% 30.7%