You are given the following information with respect to an active/immunization combination strategy for a fixed-income portfolio:

Immunizable target return = 8%

Minimum return = 5%

Worst case active return = 2%

Calculate the active component of this portfolio that will ensure the minimum return.

A.

37.5%

B.

40.0%

C.

62.5%

D.

50.0%

E.

83.3%