GenLabs Has Been a Hot Share the Last Few Years,but

Multiple Choice

GenLabs has been a hot share the last few years,but is risky.The expected returns for GenLabs are highly dependent on the state of the economy as follows: $\begin{array}{|l|l|l|}\hline \text { State of Economy } & \text { Probability } & \text { GenLabs Returns } \\\hline \text { Depression } & .05 & -50 \% \\\hline \text { Recession } & .10 & -15 \% \\\hline \text { MildSlowdown } & .20 & 5 \% \\\hline \text { Normal } & .30 & 15 \% \\\hline \text { Broad Expansion } & .20 & 25 \% \\\hline \text { StrongExpansion } & .15 & 40 \%\\\hline\end{array}$ The expected return on GenLabs is:

A) 3.3%
B) 8.5%
C) 12.5%
D) 20.5%
E) None of the above.