Pineapple Inc stock is expected to produce the following returns given the various states of the economy

The expected return on this stock = 0.05

The detailed calculations are shown below:

Given data from the problem are

The formula for expected return is as below:

Expected return = { (Return under recession state * Probability under recession state) + (Return under Normal state * Probability under Normal state) + (Return under Boom state * Probability under Boom state) }

Plugging in the given data from the problem, we get

= { ( -0.28 * 0.3 ) + ( 0.17* 0.6 ) + (0.33 * 0.1) }

= { -0.08 + 0.10 + 0.03 }

= 0.05

Thus the expected return on this stock = 0.05