You recently purchased a stock that has a rate of return of 25 percent in a booming economy, 13 percent in a normal economy, and negative 7 percent in a recessionary economy. The probability of a boom economy is 20 percent while the probability of a normal economy is 60 percent. What is your expected rate of return on this stock?

Group of answer choices

11.40%

10.50%

12.08%

16.04%