The Inferior Goods Co. stock is expected to earn 22 percent in a recession, 7 percent in a normal economy, and lose 14 percent in a booming economy. The probability of a boom is 20 percent while the probability of a normal economy is 55 percent. What is the expected rate of return on this stock?
A. 6.55%
B. 12.15%
C. 4.75%
D. 8.60%
E. 11.75%