What Is the Expected Return on This Stock Given the Following

Multiple Choice

What is the expected return on this stock given the following information?
$\begin{array}{lcc}\text { State of the Economy}&\text { Probability}&\text { E(R) }\\\text { Boom } & .4 & 12\% \\\text { Recession } & .6 & -12\%\end{array}$

A) 5.70%
B) 5.20%
C) 4.80%
D) 3.70%
E) 2.40%