As a financial analyst you are required to analyze various securities. You have spent the last two weeks examining the Walt Disney Company, which is currently selling for $23.00 per share. You estimate that there is a 30% the firm will continue to perform in line with historical growth rates. If this is the case the firm will earn 12.5%. If the firm does better than historical performance, the stock return will be 18.9% (you believe there is a 25% probability this will occur). And if the firm does worse that historical performance the stock return will be 8.7%. What is the expected return on the Walt Disney Company?