An investor has a portfolio consisting of three stocks with the following weights and expected annual returns: Stock A accounts for $40\%$ of the portfolio with an expected return of $12\%$; Stock B accounts for $35\%$ of the portfolio with an expected return of $8\%$; Stock C accounts for $25\%$ of the portfolio with an expected return of $-4\%$. Which of the following statements about the expected annual return is/are correct?