You recently purchased a stock that is expected to earn 19 percent in a booming economy, 14 percent in a normal economy, and lose 3 percent in a recessionary economy. There is a 21 percent probability of a boom, a 70 percent chance of a normal economy, and a 9 percent chance of a recession. What is your expected rate of return on this stock?
3.33 percent
13.52 percent
6.76 percent
10.00 percent
11.00 percent