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You are considering to invest in the following stock: it is expected to earn 19% in a booming economy, 1% in a normal economy and
You are considering to invest in the following stock: it is expected to earn 19% in a booming economy, 1% in a normal economy and -8% in a recession. The probability of a boom is 13%, the probability of a normal economy is 83%, and probability of a recession is 4%. What is the expected rate of return on this stock?(Format your answer to percent and round answers to two decimals without %, for example, for answer 0.43%, enter 0.43 only)
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