What Is the Expected Return on This Stock Given the Following

What is the expected return on this stock given the following information?
$\begin{array}{lcc}\text { State of the Economy }&\text { Probability}&\text { E(R) }\\\text { Boom } & .25 & 20\% \\\text { Normal } & .55 & 15\% \\\text { Recession } & .20 & -12 \%\end{array}$

A) 9.36%
B) 9.74%
C) 10.85%
D) 11.78%
E) 12.05%

Correct Answer:

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