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The probabilities of recession, normal, and boom states of economies are 0.15, 0.65, 0.20 respectively. Expected return of stock A in recession, normal and boom

The probabilities of recession, normal, and boom states of economies are 0.15, 0.65, 0.20 respectively. Expected return of stock A in recession, normal and boom is -2.00% 8.00% 15.00% respectively. What is the expected rate of return on stock A?

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6.53%

7.18%

7.90%

8.69%

9.56%

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