X P8-17 (similar to) Question Help Expected return. Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year in the following table: E. The probability of a boom economy is 22%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 13%. Estimate the expected returns on the following individual investments for the coming year. What is the expected return of the stock investment? % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. U d Investment Stock Corporate bond Government bond Boom 28% 9% 8% Forecasted Returns for Each Economy Stable Growth Stagnant 12% 6% 7% 5% 6% 4% Recessic 13% 3% 2% Print Done