If Microsoft Stockholders Expect Either a 25% Return or a 2

Multiple Choice

If Microsoft stockholders expect either a 25% return or a 2% return,each with a 50% probability,and Apple Computer shareholders expect a 10% return with certainty,what is the expected return from a portfolio comprised of equal amounts of stock from both firms?

A) 37.00%
B) 23.50%
C) 11.75%
D) 10.75%
E) 12.33%