Consider the Following Probability Distribution for Stocks a and B

Multiple Choice

Consider the following probability distribution for stocks A and B: $$\begin{array} { c c c c } \text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.10 & 10 \% & 8 \% \\2 & 0.20 & 13 \% & 7 \% \\3 & 0.20 & 12 \% & 6 \% \\4 & 0.30 & 14 \% & 9 \% \\5&0.20 & 15 \% & 8 \%\end{array}$$
The expected rates of return of stocks A and B are _____ and ____,respectively.

A) 13.2%;9%.
B) 14%;10%
C) 13.2%;7.7%
D) 7.7%;13.2%
E) none of these