You recently purchased a stock that is expected to earn 40 percent in a booming economy, 15 percent in a normal economy, and lose 30 percent in a recessionary economy. There is a 20 percent probability of a boom and a 65 percent chance of a normal economy. What is your expected rate of return on this stock?

13.25 percent

8.33 percent

10.75 percent

11.50 percent