Crabby Shores stock is expected to return 16 percent in a booming economy, 11.5 percent in a normal economy, and 1.8 percent in a recession.The probabilities of an economic boom, normal state, or recession are 6 percent, 85 percent, and 9 percent, respectively.What is the expected rate of return on this stock?
A)8.96 percent
B)9.63 percent
C)9.50 percent
D)10.90 percent
E)7.57 percent

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The Answer of Crabby Shores stock is expected to return 16 percent in a booming economy, 11.5 percent in a normal economy, and 1.8 percent in a recession.The probabilities of an economic boom, normal state, or recession are 6 percent, 85 percent, and 9 percent, respectively.What is the expected rate of return on this stock?
A)8.96 percent
B)9.63 percent
C)9.50 percent
D)10.90 percent
E)7.57 percent

Crabby Shores Stock Is Expected to Return 16 Percent in a Booming