-What Is the Expected Return of a Portfolio 60 Percent

Multiple Choice

$\begin{array}{c}\begin{array}{c}\underline{\text {State of the economy}}\\\text {Boom}\\\text {Recession}\end{array}\begin{array}{c}\underline{\text {Probability}}\\.3\\.7\\\end{array}\begin{array}{c}\underline{\text {Stock Q}}\\14 \% \\8\% \\\end{array}\end{array}$

-What is the expected return of a portfolio 60 percent invested in Stock P and the remainder in Stock Q?

A) 14.30%
B) 13.19%
C) 15.17%
D) 12.56%
E) 10.66%