The common stock of Manchester & Moore is expected to earn 13 percent in a recession, 6 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 5 percent while the probability of a recession is 45 percent. What is the expected rate of return on this stock?
A. 8.52 percent
B. 8.74 percent
C. 8.65 percent
D. 9.05 percent
E. 9.28 percent