Given the Following Probability Distributions,what Are the Expected Returns for the Market

Multiple Choice

Given the following probability distributions,what are the expected returns for the Market and for Security J? State 1 P1 = 0.2 Km = -10% Kj = 40% : State 2 P1 = 0.5 Km = 10% Kj = -20% : State 3 P1 = 0.3 Km = 30% Kj = 30%

A) 10.0%; 13.0%
B) 9.5%; 13.0%
C) 10.0%; 11.3%
D) 12.0%; 7.0%
E) 10.0%; 9.5%