Rosita Owns a Stock with an Overall Expected Return of 14.40

Multiple Choice

Rosita owns a stock with an overall expected return of 14.40%. The economy is expected to either boom or be normal. There is a 52% chance the economy will boom. If the economy booms, this stock is expected to return 15%. What is the expected return on the stock if the economy is normal?

A) 12.00%
B) 12.83%
C) 13.15%
D) 13.75%
E) 14.40%