According to equity analysts at Goldman Sachs, over the next year, there is a 18% chance of an economic boom and a 75% likelihood of a normal economy. You just bought shares of Time Warner (ticker symbol: TWX) that are expected to earn 11% in a booming economy and 8% in a normal economy. What is Time Warners expected return if the company is expected to lose 6% in a recessionary economy?

a) 8.4 b) 7.56 c) 7.8% d) 6.38% e) 6%