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 45 percent each in Stock A and Stock B and 10 percent in Stock C. What is the expected return on the portfolio ? 7.29 percent 12.71 percent O 11.91 percent 9.18 percent