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The current price of stock Fast - Caps ( FC ) is $ 1 0 0 . In a year when the market is up

The current price of stock Fast-Caps (FC) is $100. In a year when the market is up, the price of FC is expected to increase to $120, while when the market is down, the price is expected to decline to $90. The probability of an up market in a year is 60% while the probability of a down market is 40%. FC expects to pay a dividend of $2 in either market condition. The T-bill rate is 3%. What is the expected return on FC?
A.7%
B.8%
C.9%
D.10%
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