Terry owns a stock that is expected to earn 8.7 percent in a booming economy, 9.2 percent in a normal economy, and 12.6 percent in a recessionary economy. Each economic state is equally likely to occur. What is his expected rate of return on this stock?

• 9.98 percent

• 11.90 percent

• 11.01 percent

• 10.38 percent

• 10.17 percent