You are planning to invest money in two securities A and B. The following information pertain to these securities: State Probability Security A Security B Normal 40% 10% 12% Recession 60% 2% 3% What is expected return for a portfolio with an investment of $5,000 in security A and $5,000 in security B?

Select one:

a. 10.1%

b. 6.5%

c. 7.9%

d. 5.9%