You own a stock that is expected to earn 18.0 percent in a booming economy, 13.0 percent in a normal economy, and 2.0 percent in a recession. There is equal probability of each economic state occurring. What is this stocks expected rate of return?

a. 7.25 percent

b. 11.00 percent (correct answer)

c. 8.25 percent

d. 9.67 percent

B is the right answer please show the procedure.