a There are two expected states of the economy. The probability of a normal economy is 60 percent and the probability of a recession is 40 percent. If the economy is normal, Security A is expected to earn 15 percent and Security B is expected to earn 8 percent. If the economy goes into a recession, Security A is expected to earn 5 percent and Security B is expected to earn 18 percent. What is the expected return on a portfolio that is equally divided among stock A, stock B, and a risk free asset? The expected return on the risk-free asset is 4 percent regardless of the state of the economy. Select one: a. 11.82 percent b. 8.97 percent C. 9.00 percent O d. 10.11 percent