Problem:
You recently purchased a stock that is expected to earn 27 percent in a booming economy, 16 percent in a normal economy, and lose 3 percent in a recessionary economy. There is a 27 percent probability of a boom, a 64 percent chance of a normal economy, and a 9 percent chance of a recession.
Required:
Question: What is your expected rate of return on this stock?
Note: Please provide full description.