You have the following information about stocks M and N:

	Probability	Stock M	Stock N
Boom	35%	11.00%	1.50%
Normal	45%	6.50%	4.25%
Bust	20%	-3.00%	14.00%

For a portfolio with an expected return of 5.50%, the allocation to Stock M should be about:

A) 50%

B) 62%

C) 28%

E(M) = 6.175%; E(N) = 5.238%; 6.175x + 5.238(1-x) = 5.50%

May some one explain this equation/answer to me in the simplest terms. Thank you!