What Is the Expected Return on a Portfolio Comprised of $4,000

Multiple Choice

What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
$\begin{array}{llcc} \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \\\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {StockM\quad Stock N}} \\ \text {Boom } & 10\% &18\% \quad \quad 10\%\\ \text { Normal} & 75\%& 7\%\quad \quad8\%\\\text { Recession }&15\%&-20\%\quad \quad6\%\\\end{array}$

A) 6.4%
B) 6.8%
C) 10.4%
D) 13.2%
E) 14.0%