Assume the economy has a 65% chance of the market return will 18% next year and a 35% chance the market return will be 15% next year. Assume the risk-free rate is 7%. If Microsofts beta is 1.3, what is its expected return next year?

Select one: A. 9.1%

B. 28.45%

C. 19.35%

D. 7%

E. 19.94%