What Is the Expected Return on a Portfolio Comprised of $3,000

Multiple Choice

What is the expected return on a portfolio comprised of $3,000 in stock K and $5,000 in stock L if the economy is normal?
$\begin{array}{llcc} \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \\\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock K\quad Stock L}} \\ \text {Boom } & 20\% &14\% \quad \quad 10\%\\ \text { Normal} & 80\%& 5\%\quad \quad6\%\\\end{array}$

A) 3.75%
B) 5.25%
C) 5.63%
D) 5.88%
E) 6.80%