A compute the expected rate of return for bmt b compute the

Question

The stocks for BMT & AWM have the following probability distributions:

Economy                    Probability                  BMT               AWM

Recession                  50%                            8%                  14%

Average                     30%                            14%                17%

Boom                         20%                            20%                22%

a) Compute the expected rate of return for BMT.

b) Compute the expected rate of return for AWM.