1. Easttown stock is expected to earn 12 percent in a normal economy, 18 percent in a strong economy, 25 percent in a booming economy, and lose 10 percent in a recession. The probability of a recession is 20 percent while the probability of a normal economy is 50 percent, the probablity of a strong economy is 25 percent, and the probability of a booming economy is 5 percent. What is the expected rate of return on this stock?

   	A.	10.24%
   	B.	11.81%
   	C.	9.75%
   	D.	12.45%
   	E.	8.85%