Beasley Enterprises stock has an expected return of 8.86 percent. The stock is expected to return 12.5 percent in a normal economy and 16 percent in a boom. The probabilities of a recession, normal economy, and a boom are 11 percent, 88 percent, and 1 percent, respectively. What is the expected return if the economy is in a recession?
- -20.91 percent
- -18.71 percent
- -13.28 percent
- -4.76 percent -22.72 percent