There are two stocks in a portfolio and two possible states of economy that may occur. The relevant information is summarized as follows: State of Economy Probability Good 0.50 Bad 0.50 Initial Investments Stock return if a certain state of economy occurs Stock 1 Stock 2 8% 15% 4% -7% $6,000 $4,000 What is the expected return of stock 1? A) 8% B) 2% C) 4% D) 6%