The economy may enter boom, normal or recession in the next year. The probability and expected return of 3 states are shown in the below table. What is the expected return of the stock for next year? State (s) Boom Normal Recession 8% 10% 7% Probability(s) 0.2 0.7 0.1 R(S) -0.1 0.1 0.5

The economy may enter boom, normal or recession in the next year. The probability and expected return of 3 states are shown in the below table. What is the expected return of the stock for next year? 8% 10% 7% The economy may enter boom, normal or recession in the next year. The probability and expected return of 3 states are shown in the below table. What is the expected return of the stock for next year? 8% 10% 7%