You have a portfolio which is comprised of $60\%$ of Stock A and $40\%$ of Stock B$.$ What is the expected return on this portfolio?

State of the Economy Probability E$($RA$)$

E$($RB$)$

Weight $60\%40\%$

Boom $\mathrm{.}220\%15\%$

Normal $\mathrm{.}612\%8\%$

Recession $\mathrm{.}210\%3\%$

Multiple Choice

$8\mathrm{.}03\%$

$7\mathrm{.}30\%$

$8\mathrm{.}88\%$

$7\mathrm{.}58\%$

$9\mathrm{.}40\%$