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ABC Investment Corporation is considering a portfolio with $30\%$ weighting in a cyclical stock and $70\%$ weighting in a countercyclical stock. It is expected that there will be three economic states; Good, Average and Bad, each with equal probabilities of occurrence. The cyclical stock is expected to have returns of $12\%,5\%$ and $1\%$ in Good, Average and Bad economies respectively. The countercyclical stock is expected to have returns of $-8\%,2\%$ and $14\%$ in Good, Average and Bad economies respectively. Given this information, calculate the portfolio expected return.

a$.3\mathrm{.}63\%$

b$.2\mathrm{.}63\%$

c$.1\mathrm{.}63\%$

d$.4\mathrm{.}63\%$

e$.5\mathrm{.}63\%$

CLEAR MY CHOICE