You Have Done a Thorough Study of the Economy and of Stock

Multiple Choice

You have done a thorough study of the economy and of Stock X and concluded the following probabilities:
$\bullet$ having a boom next year is 20.0%
$\bullet$ having a stable economy is 55.0%
$\bullet$ having a recession is 25.0%.
You have also found the price of Stock X will be:
$\bullet$ $45 if there is a boom
$\bullet$ $25 if the economy is stable
$\bullet$ $15 if there is a recession.
What is the ex ante expected return on Stock X if it is currently selling for $24?

A) -9.43%
B) 10.42%
C) 18.06%
D) 26.50%