Hull Consultants a famous think tank in the Midwest has provided probability e

Hull Consultants a famous think tank in the Midwest has provided probability estimates for the four potential economic states for the coming
year. The probability of a boom economy is 14% the probability of a stable growth economy is 17% the probability of a stagnant economy is 48% and the
probability of a recession is 21%. Estimate the expected returns on the following individual investments for the coming year.

Investment

Forecasted Returns for Boom Economy

Forecasted Returns for Stable Growth Economy

Forecasted Returns for Stagnant Economy

Forecasted Returns for Recession Economy

Stock

29%

15%

2%

-15%

Corporate bond

9%

7%

5%

4%

Government bond

8%

6%

4%

3%