Consider the following information on three stocks: State of Probability of Rate of Return Economy State of Economy if State Occurs Stock A Stock B Stock C Boom .25 27 .15 .11 Normal .65 .14 .11 .09 Bust .10 -.19 -.04 .05 A portfolio is invested 25 percent each in Stock A and Stock B and 50 percent in Stock C. What is the expected return on the portfolio ? 12.71 percent 10.66 percent 9.18 percent 11.91 percent