Consider the following information on three stocks:

$\backslash$table$[[$State of Economy,Probability of State of Economy,Rate of Return if State Occurs$],[,$Stock A$,$Stock B$,$Stock C$],[$Boom$,\mathrm{.}25,\mathrm{.}31,\mathrm{.}18,\mathrm{.}07],[$Normal$,\mathrm{.}60,\mathrm{.}13,\mathrm{.}09,\mathrm{.}05],[$Bust$,\mathrm{.}15,-\mathrm{.}09,-\mathrm{.}08,\mathrm{.}03]]$

A portfolio is invested $40$ percent each in Stock A and Stock B$,$ and $20$ percent in Stock C$.$ The expected T$-$bill rate is $3\mathrm{.}2$ percent. What is the expected risk premium on the portfolio? $(10\%)$

A$.3\mathrm{.}29\%$

B$.5\mathrm{.}55\%$

C$.7\mathrm{.}00\%$

D$.10\mathrm{.}25\%$

E$.12\mathrm{.}75\%$