A stock will have a loss of 12 percent in a bad economy, a return of 11.8 percent in a normal economy, and a return of 25.7 percent in a hot economy. There is 24 percent probability of a bad economy, 27 percent probability of a normal economy, and 49 percent probability of a hot economy. What is the variance of the stock's returns?

Multiple Choice

• .15146

• .04588

• .03441

• .02294

• .01721