Given the information in the following table, what is the expected return of the

security?

State of Economy

Probability of Occurrence

High Growth

10%

Moderate Growth

* 20%

Stable

40%

Expected Return

12%

8%

3%

Recession

30%

-2%

O a.

12%

O b. 8%

O c.

3%

O d.

4.3%

O e.

3.4%