James Watson is considering an investment in Bristol Inc. and has gathered the following information. What is the expected return for a share of the firm's stock?

State of the Economy	Probability of the State	Expected Return Bristol Inc.
Recession	.20	-10%
Steady	.50	10%
Boom	.30	45%

Select one:

a.

65.0%

b.

18.5%

c.

16.5%

d.

15.0%

e.

45.0%