If the economy booms, RTF, Inc. stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 70 percent while the probability of a recession is 30 percent. What is the variance of the returns on RTF, Inc. stock?

.034500

.032078

.000412

.000720

.001029