Stock X is worth $40 today. In one year, if economic conditions are good, X will pay a dividend of $4 and have a price of $44. If economic conditions are bad, X will pay no dividend and have a price of $40. Conditions will be good or bad with equal probability (50%/50%). Which of the following is closest to the expected return on stock X?

10%

5%

Not enough info

9%

20%