# Expected return

High Flier's common stock is expected to return 28 percent in a boom economy,14 percent in a normal economy, and -32 percent in a recession. The probability of a boom is 20 percent, of a normal economy is 70 percent, and of a recession is 10 percent. What is the expected return on High Flier's common stock?

a. 10.9 percent

b. 11.4 percent

c. 12.2 percent

d. 13.6 percent

https://brainmass.com/business/beta-and-required-return-of-a-project/high-fliers-common-stock-expected-return-285896

#### Solution Summary

The solution explains how to calculate the expected return.

$2.19