Please do not send me a similarily answered question, I checked through Chegg for the same type of question already.

In one year the economy will either be weak, normal, or strong with probabilities of .3, .35, and .35 respectively. Security W pays $100 if the economy is weak, security N pays $100 if the economy is normal, and security S pays $100 if the economy is strong. The current prices of these securities are as follows: W = $40, N = $30, S = $25. What is the expected return on the Market Index (M) that pays $800, $1000 or $1200 depending on whether the economy is weak, normal or strong respectively?

a. 2.2%

b. 5%

c. 5.263%

d. 9.783% ---d is the answer

e. 11.111%