If the economy is normal, Charleston Freight stock is expected to return 10.5 percent. If the economy falls into a recession, the stocks return is projected at a negative A) 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. What is your expected rate of return on this stock?

-9.40 percent

-2.25 percent

6.08 percent

12.60 percent

10.88 percent