A stock will have a loss of 10.5 percent in a bad economy, a return of 10.3 percent in a normal economy, and a return of 24.2 percent in a hot economy. There is 27 percent probability of a bad economy, 42 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns?

Multiple Choice

.02625

.01750

.01312

.13229

.03500