Assume the economy has a 60% chance of the market return will 15% next year, a 40% chancethe market return will be 5% next year. Assume the risk-free rate is 6%. If Microsofts beta is1.18, its expected return next year is closest to

(a) 11%(b) 11.9%(c) 5.9%(d) 5%(e) None of the above is within0.1% of the true answer