You Own a Portfolio with the Following Expected Returns Given

Multiple Choice

You own a portfolio with the following expected returns given the various states of the economy.What is the overall portfolio expected return? $$\begin{array} { l c c } \begin{array} { l } \text { State of } \\\underline{\text { Economy }}\end{array} & \begin{array} { l } \text { Probability of } \\\underline{\text { State of Economy }}\end{array} & \begin{array} { c } \text { Rate of Return } \\\underline{\text { if State Occurs }}\end{array} \\ \text { Boom } & 15 \% & 18 \% \\\text { Normal } & 60 \% & 11 \% \\\text { Recession } & 25 \% & - 10 \%\end{array}$$

A) 6.3%
B) 6.8%
C) 7.6%
D) 10.0%
E) 10.8%