You have forecast the economic activity for next year and estimate the following probabilities:

• having a boom next year is 20.0%
• having a stable economy is 55.0%
• having a recession is 25.0%.

You also forecast the price of Carbon Metals shares to be the following:

• $45 if there is a boom
• $25 if the economy is stable
• $15 if there is a recession.

What is the expected return on Carbon Metals if it is currently selling for $24 per share?

Question 29 options:

a)	9.43%
b)	18.06%
c)	26.50%
d)	10.42%