The following table shows the expected return of 3 stocks: X, Y, Z given three possible states of the economy. The last row shows the probability of each state. Assuming you invest 20% of your portfolio in stock X, 50% in stock Y, and 30% in stock Z, what is your portfolios expected return?

	Good economy	Average economy	Poor economy
Stock X return	18%	11%	-10%
Stock Y return	9%	7%	4%
Stock Z return	6%	9%	13%
Probability of state	0.2	0.7	0.1

Select one:

a. 8.25%

b. 9.45%

c. 9.50%

d. 7.40%

e. 8.33%