You recently purchased a stock that is expected to earn 20 percent in a booming economy, 11 percent in a normal economy, and lose 28 percent in a recessionary economy. There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock? Select the choice that is closest to your answer. 2.25 percent 1.15 percent 2.60 percent 3.65 percent